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2011-05-31 18:16:36 CEST 2011-05-31 18:17:37 CEST REGULATED INFORMATION BankNordik P/F - Company AnnouncementMoody's puts ratings under reviewMoody's Investor Service today announced that they today placed under review for possible downgrade the following ratings of BankNordik P/F: Baa2 long-term and Prime -2 short-term deposit ratings, as well as the D+ bank financial strength rating (BFSR), which maps to Baa3 on the long-term scale. The review for possible downgrade was triggered by the bank's acquisition of branches of Amagerbanken A/S (Ca/NP/E, stable) from Finansiel Stabilitet. If regulatory approval is given, the acquisition would increase BankNordik's loan book and deposit base by almost 55% and 63%, respectively. The transaction would also increase BankNordik's deposit-to-loan ratio to around 110%, although the bank has indicated that it will reduce the solvency ratio from 17% currently to around 13%. Moody's recognises the potential long-term strategic benefits for BankNordik in expanding from its leading but narrow geographic focus in the Faroe Islands towards a more diversified franchise in Denmark. Moody's will also asses the ability of the bank to integrate the new branches while keeping costs under control. "We recognise that Moody's has a standard process of reviewing issuers in connection with important strategic moves. Our acquisition of the healthy parts of Amagerbanken is clearly an important and significant strategic move for BankNordik, which improves our geographical risk diversification and our liquidity position. Our deposits are now 10% higher than our loans making BankNordik's liquidity position independent from external funding loans", says Janus Petersen, CEO of BankNordik. "It comes as no surprise for us that Moody's is interested in receiving more detailed information about the acquisition in order to review BankNordik's current ratings. As in connection with our acquisition of the 12 bank branches from Sparbank last year we will put our best efforts in providing the required information to Moody's." Further information: Janus Petersen, CEO, tel +298 330 340 |
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