Moody’s upgrades Šiaulių Bankas ratings to Baa1

The international rating agency Moody’s Investor Service has upgraded Šiaulių Bankas long-term deposit ratings from Baa2 to Baa1.The outlook on the long-term deposit ratings is affirmed as stable. This is the highest rating in the bank’s history.

“This assessment by one of the largest rating agencies shows that despite uncertainty and a somewhat slowing economy, the consistent and balanced growth strategy of Šiaulių Bankas is paying off. This is an important achievement for us, a confidence-boosting indicator for clients who have entrusted funds to the bank, and a strong signal for investors,” emphasised Vytautas Sinius, Chief Executive Officer of Šiaulių Bankas.

In its statement, Moody’s noted that the key driver for the upgrade of the ratings is the continued strengthening of the bank’s fundamentals, improving profitability, strong levels of capitalisation and adequate liquidity profile, with problem loans to gross loans ratio improving to below 3%. Moody’s believes that despite the unfavourable macroeconomic situation, fundamentals of Šiaulių Bankas will remain strong during the next 12 to 18 months, and that the bank will be able to manage its asset quality and capitalisation ratios, and that its liquidity position will remain stable.

Moody’s has also upgraded the long-term Counterparty Risk Ratings from Baa1 to A3. The long-term Counterparty Risk Assessments (CR Assessments) were upgraded from Baa1(cr) to A3(cr). Moody’s has affirmed short-term deposit ratings of Šiaulių Bankas at P-2 and the short-term CR Assessments at P-2(cr). The Baseline Credit Assessment has also been upgraded from Ba1 to Baa3.

Moody’s is one of the most influential international credit rating agencies in assessing the ability of companies and governments to meet their debt obligations.