Moody’s change Banco Angolano de Investimentos’ Ba3 deposit ratings to negative from stable

Limassol, March 04, 2015 — Moody’s Investors Service has today changed the outlook to negative from stable on the Ba3 deposit ratings of Banco Angolano de Investimentos, S.A. Concurrently, Moody’s affirmed the bank’s Ba3 deposit ratings and E+ standalone bank financial strength rating (BFSR), which is equivalent to a b1 baseline credit assessment. The E+ BFSR maintains a stable outlook.

The rating action on Banco Angolano de Investimentos follows the change in the outlook to negative of Angola’s Ba2 sovereign bond ratings (see “Moody’s affirms Angola Ba2 ratings, changes outlook to negative”, published on 3 March 2015). The negative outlook on the sovereign bond rating is driven by the downside risks stemming from the oil price decline to economic growth, government finances and the external payments position.

The negative outlook on Banco Angolano de Investimentos’ deposit ratings reflects (1) Moody’s view that the challenging domestic operating environment will weigh on the bank’s financial fundamentals, mainly its asset quality and profitability metrics; and (2) the significant correlation between the bank’s creditworthiness and the sovereign’s own credit profile through the bank’s holdings of government-related assets.

The affirmation of Banco Angolano de Investimentos’ ratings captures Moody’s view of the bank’s resilient credit profile, with a strong deposit-funded corporate banking franchise, liquid balance sheet, and significant capital buffers to absorb loan-related losses.