Moody's Investors Service has today placed the following ratings of Raiffeisenlandesbank Oberosterreich (RLB OOe) and Raiffeisenlandesbank Niederosterreich-Wien (RLB NOe) on review for downgrade:
--- RLB OOe: The C- standalone bank financial strength rating (BFSR), equivalent to a standalone credit assessment of baa2, the review of which triggered the review of the A1 long-term debt and deposit ratings; and
--- RLB NOe: The C-/baa1 BFSR, the review of which triggered the review of the A1 long-term bank deposit ratings.
At the same time, Moody's has affirmed both banks' Prime-1 short-term ratings and assigned A1 senior unsecured long-term debt ratings to RLB NOe; the senior unsecured debt ratings are also on review for downgrade.
The review placements reflect Moody's view that both banks are increasingly vulnerable to elevated risks in the current economic downturn, due to both banks' continued weak capital generation and earnings volatility from non-banking and equity investments; combined with only moderate capitalisation levels.