Moody's affirms Latvian banks

Moody's Investors Service affirmed the ratings of the four Latvian banks it rates: Baltic International Bank (B1/Not Prime/E+), Baltic Trust Bank (Ba3/Not Prime/D), Mortgage and Land Bank of Latvia (A2/Prime-1/D-) and Parex Bank (Ba1/Not Prime/D+).

The outlook is stable.

Moody's said the banks are in a good position to take further advantage of positive future developments in Latvia and their ratings are supported by the improvement in the quality of Latvian banks' credit portfolios, partly aided by foreign strategic involvement.

However, the ratings remain constrained by Latvia's A2 sovereign ceiling and efforts to grow market share have been counterbalanced by the challenge of having to control costs and the need for further franchise investments, the agency said.

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