Banca Transilvania, at it’s first assessment from the international rating agency Moody's
27 November 2023 Reading time 2:00 minutes
Banca Transilvania has received an investment grade credit rating from Moody's, which rates BT as having robust capital, strong and resilient profitability and significant liquidity.
The stable outlook on BT's long-term ratings reflects Moody's expectation that financial performance, particularly capital and profitability, will remain strong despite a less favourable macroeconomic environment and if the liability structure does not change significantly to meet MREL requirements. European standards require banks to ensure an optimal level of MREL-eligible funds at all times, distinct from customer deposits, which are guaranteed by the Bank Deposit Guarantee Fund.
"We are pleased that Banca Transilvania is now rated by two international rating agencies, one of them being Moody's, which confirms BT's solid position. This is an important moment and an important step, in a context where capital requirements, in Romania and the European Union, are increasingly stringent and the accreditations of the international rating agencies support our efforts to maintain an optimal cost of capital, contributing to the competitiveness of Romania's economy - states Ӧmer Tetik, CEO, Banca Transilvania.
The ratings assigned to Banca Transilvania also incorporate the implementation of the ESG principles in the business activity, in line with Moody's Investors Service's General Principles for Assessing Environmental, Social and Governance Risks. Moody's considers that Banca Transilvania adequately manages risks, as demonstrated by its strong capitalization and high liquidity and despite its appetite for growth both organically and through acquisitions.
Moody's ratings for BT:
- Baa2/P-2 for long-term and short-term deposits;
- Baa3/P-3 for long-term and short-term issuers;
- Stable outlook on long-term ratings;
- Long and short-term counterparty risk ratings (CRR) Baa1/P-2;
- Basic Credit Assessment (BCA) ba1 and an adjusted BCA;
- Counterparty risk (CR) assessments Baa2(cr)/P-2(cr).
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