Fitch cuts three Slovenia banks

Fitch Ratings said it downgraded Nova Ljubljanska Banka, Nova Kreditna Banka Maribor and Abanka Vipa dd's long-term issuer default ratings and viability ratings.

Fitch said it downgraded Nova Ljubljanska Banka's long-term foreign-currency issuer default rating to BBB from A-, short-term foreign-currency issuer default rating to F3 from F2, viability rating to B from BB- and guaranteed notes to AA- from AA.

The agency also said it downgraded Nova Kreditna Banka Maribor's long-term foreign-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2, viability rating to BB from BB+ and hybrid capital instrument to B+ from BB-.

Fitch also downgraded Abanka Vipa's long-term foreign-currency issuer default rating to BB- from BBB-, short-term foreign-currency issuer default rating to B from F3, viability rating to BB- from BBB-, guaranteed notes to AA- from AA and hybrid capital instrument rating to B from BB.

The downgrades reflect the downgrade of the Slovenian sovereign rating to AA- with a negative outlook, the agency said.

The downgrades also consider delays and some uncertainty surrounding the banks' pending recapitalization and the government's participation in this, Fitch said.

The ratings continue to be driven by their majority state ownership, high systemic importance, the track record of capital support and the government's stated intention to remain the largest shareholder in the banks, the agency said.

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