S&P revises Moneta view to stable

S&P said it revised the outlook for Moneta Money Bank as to stable from positive and affirmed the bank’s BBB rating.

“We believe that currently difficult economic environment related to severe Czech state and bank countermeasures to contain the spread of Covid-19 will put temporary but significant pressure on Moneta's earnings and risk costs in 2020. In our view, when the government-imposed debt repayment moratoria cease to apply – in about six months – a high level of nonperforming loans and risk costs will materialize since not every borrower will be able to quickly recover from the current economic shutdown,” said S&P in a press release.

As a result, the agency said it sees a weakening of Moneta’s risk metrics in the Czech market over the next 12 months before slowly recovering next year.

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