The subordinate and junior subordinate ratings were downgraded to C from Caa2 and Caa3, respectively, Moody’s said in a statement on Tuesday.
“Concurrently, NLB’s standalone E bank financial strength rating (BFSR) has been affirmed. However, Moody’s has lowered the bank’s baseline credit assessment (BCA) to ca from caa1 within E standalone BFSR. The downgrades were prompted by Moody’s assessment that NLB’s credit profile has been further weakened by (i) the necessity of a further capital injection to maintain capital adequacy above European Banking Authority (EBA) regulatory…