Moody’s ups Bulgarian banks’ deposits

Moody's Investors Service said it upgraded the long and short-term local and foreign-currency deposit ratings of Raiffeisenbank (Bulgaria) EAD to Baa3/Prime-3 from Ba2/Not Prime, and the long-term, local and foreign-currency deposit ratings of Municipal Bank AD to Ba3 from B1.

Both banks' long-term deposit ratings carry a stable outlook

Moody's said the actions reflect the improving operating environment for banks in Bulgaria, which prompted the agency to change the macro profile it assigns to Bulgaria to "moderate-" from "weak+." This change in the macro profile triggers a lower loss assumption in the application of Moody's Advanced Loss Given Failure (LGF) analysis, which aims to assess the extent of losses to creditors in a bank's resolution, and leads to a higher uplift in banks' deposit ratings.

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