S&P changes outlook on MKB Romexterra Bank from ‘stable’ to ‘negative’, reaffirming ratings

Rating agency Standard & Poor’s announced it revised downwards rating outlook on Romanian lender MKB Romexterra Bank from ‘stable’ to ‘negative’ and reaffirmed the ‘BB-‘ long-term and ‘B’ short-term counterparty credit ratings.rnrnThe negative outlook mirrors negative impact of the deteriorated domestic operating and financial environment in Romania on MKB Romexterra’s financial profile and performance, S&P said.rnrnThe bank’s creditworthiness is under pressure from the difficult economic environment, once the financial crisis was felt in Romania, S&P credit analyst Elena Romanova said. Moreover, the lender’s spending advanced significantly this year triggering a net loss in the first nine months, she added.rnrnMKB Romexterra Bank is also faced with high credit risks, owing to its rapid expansion last year which slowed down this year on the on-going financial turmoil. rnrnMKB Romexterra, which is 80 percent controlled by Hungary-based bank MKB Bank ZRT, is a middle-sized lender, the 19th by assets in Romania, with a 1 percent market chunk. rnrn