NK Bank -- Moody's affirms NK Bank's B3 deposit ratings; stable outlook
Rating Action: Moody's affirms NK Bank's B3 deposit ratings; stable outlookGlobal Credit Research - 18 Jan 2022London, 18 January 2022 -- Moody's Investors Service ("Moody's") has today affirmed the B3/Not Prime long-term and short-term local and foreign currency deposit ratings of NK Bank, the outlook on the long-term ratings remains stable. Concurrently, Moody's affirmed the bank's b3 Baseline Credit Assessment (BCA) and Adjusted BCA. Moody's also affirmed NK Bank's B2(cr)/Not Prime(cr) long-term and short-term Counterparty Risk Assessment (CR Assessment) and its B2/Not Prime long-term and short-term local and foreign currency Counterparty Risk Ratings.A full list of affected ratings can be found at the end of this press release.RATINGS RATIONALEAFFIRMATION OF BCA AND DEPOSIT RATINGSThe affirmation of NK Bank's BCA and deposit ratings reflects the bank's good asset quality, as well as its solid capital and liquidity buffers, that are counterbalanced by the volatile profitability, concentrated loans and deposits, and limited franchise.As of 30 June 2021, NK Bank's problem loans were 4.9% of its total gross loans down from 5.4% as of year-end 2020, which is below the sector average of about 7%.
