Moody's rating agency has upgraded the financial strength rating of Raiffeisen Bank Romania, formerly known as Banca Agricola from 'E' to 'E+'. Moody's also placed a positive outlook on the rating. "The upgrade stems from the actions taken by the new owner of the bank, Raiffeisen Zentral Bank (Austria) in view to restructure, re-capitalise and re-brand the institution. The information technology systems and the branch distribution network of Raiffeisen Bank Romania have been rationalised and are scaleable," says Moody's. "The positive outlook on the financial strength rating reflects the positive dynamics taking place within the bank. The currently high capitalisation and liquidity provide resources for expansion and deepening of the franchise in Romania," the rating agency said. "I find Moody's decision logical and reflecting the efforts made by both the shareholder and the management team to improve the operations and profitability of the bank," Steven van Groningen, the bank's chairman told Ziarul Financiar. Austria-based Raiffeisen Group in 2001 bought the controlling interests in Banca Agricola for $15 million in cash and $37 million in investments. |
