Moody’s to review Cambodia’s banks for downgrades

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. … 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. The rating agency views long-term obligations with a B grade as “subject to high credit risk”. Given continued gross domestic product growth in the Kingdom, which the World Bank and Asian Development Bank projecting 6.5 per cent year-on-year growth in 2012, the potential downgrades were unexpected, Campu country head Phan Ying Tong said. “Sometimes we feel surprised. If [Moody’s] policy continues to change, then it will continue to affect our banks.” …

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