Moody's lowers Parex Bank

Moody's Investors Service said it downgraded Parex Bank's local and foreign currency long-term debt ratings to B2 from Ba1, and placed them on review for further downgrade. The bank's Not Prime short-term rating was affirmed.

The outlook is stable.

The actions follow the announcement of deposit withdrawal restrictions put in place earlier this week by the Cabinet of Ministers of the Republic of Latvia and the Financial and Capital Market Commission, according to the agency.

The downgrade reflects the partial deposit freeze, which Moody's said it views as constituting a selective default.

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