Moody's cuts three Slovenian banks

Moody's Investors Service said it downgraded the long-term deposit ratings of the following three Slovenian banks:

• Nova Ljubljanska banka: Deposit ratings downgraded to Ba2 from Ba1; E+ standalone bank financial strength rating, remapped to B2 from B1 on the long-term scale;

• Nova Kreditna banka Maribor: Deposit ratings downgraded to Ba2 from Ba1; standalone bank financial strength rating downgraded to E+/B1 from D/Ba3; and

• Abanka Vipa: Deposit ratings downgraded to Ba3 from Ba2; E+ standalone bank financial strength rating, remapped to B2 from B1 on the long-term scale.

Moody's said the downgrades reflect the sharp asset-quality deterioration in the banks' loan portfolios and high provisioning needs that have eroded their capital buffers and loss-absorption capacity.

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