Lithuania’s Ukio Bankas Ends Work With S&P, Says Rating Unneeded
Ukio Bankas, the largest of Lithuania’s two publicly traded lenders by assets, said it ended cooperation with S&P because there was no current need that justified the cost of an international rating.
“Having no plans to access the international capital markets in the nearest future and reducing operating costs, AB Ukio Bankas has taken a decision to withdraw the ratings from rating agency Standard & Poor’s,” the bank said in a statement on the website of the Nasdaq OMX Vilnius exchange today.
S&P affirmed Ukio’s long-term credit rating of ’B’ with a stable outlook in a statement today and withdrew the rating, which it said factored in the bank’s “weak risk position as a result of its recently high loss history and loan concentration in commercial real estate” together with its “moderate’ capital and ‘‘adequate’’ liquidity.
Kaunas-based Ukio Bankas (UKB1L) shares, which traded intraday at a nine-year low of 0.108 euro, have declined 29 percent since Oct. 29, when the bank reported a group net loss of 44 million litai ($16.9 million) for the first nine months of this year.
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