Nova Kreditna Bank Cut by S&P as Assets Quality Worsens

Nova Kreditna Banka Maribor d.d., Slovenia’s second-biggest lender by assets, had its rating cut by one level at Standard & Poor’s because of a deteriorating asset quality.

The ratings service lowered the unsolicited public information rating of the Maribor-based bank to BBpi from BBBpi, S&P said in a statement today. The banks’s 2011 larger than previously estimated loss also contributed to the cut, analysts including Pierre Gauter said in the statement.

“We anticipate that Nova Kreditna non-performing loans will continue to rise in 2012,” as the number of corporate bankruptcies rises weakening the bank’s credit quality, the statement said.

Slovenia’s second-biggest bank after Nova Ljubljanska Banka d.d. reported a 81 million-euro ($106 million) loss last month, revising an earlier figure of 53.8 million euros reported on March 1 on increased bad loan reserves. The lender, which last month confirmed Ales Hauc as the new chief executive officer, may suffer further losses as the export-driven economy slides into its second recession in three years.

Nova Kreditna is likely to report another loss for this year, “though smaller than the one in 2011,” S&P said.

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