Moody’s Investor Services will review ACLEDA Bank and Cambodian Public Bank (Campu Bank) for potential downgrades, according to a release from the rating agency on Wednesday. But the move comes primarily as a response to the global financial crisis and the rating agency’s attempt to realign sovereign ratings with that of banks, an official at Moody’s said.

The reviews and potential downgrades could be the final rating action in response to Moody’s policy change, Singapore-based analyst Christian de Guzman said by email yesterday.

Moody’s will review ACLEDA’s and Campu’s “bank financial strength rating”, both of which stand at a D, according to a statement issued late on Tuesday. ACLEDA’s “local currency long-term deposit and issuer rating”, now at a Ba2 rating, will also be up for review.Banks rated D display modest intrinsic financial strength, potentially requiring some outside support at times, according to Moody’s.

Excerpt from:
Moody’s to review Cambodia’s banks for downgrades

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

UOB Thailand outlook changed to negative after acquisition of Citi

United Overseas Bank (Thai) Public Co Ltd, headquartered in Bangkok, reported total assets of THB725 billion as of 31 December 2021. The outlook was changed to negative from stable because the acquisition will result in a significant decrease in UOBT’s core capital ratio.

Citi to Sell Consumer Bank in Indonesia, Malaysia, Thailand and Vietnam to UOB Group

The agreement covers all related Citi staff, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon close of the proposed transaction. 

How will US interest rates affect emerging markets?

While the rate hikes were initiated to help the US domestic economy, higher interest rates are nevertheless likely to impact emerging markets.