Moody's Investors Service has today assigned to Banco Angolano de Investimentos S.A. (BAI) Ba3/Not-Prime global local-currency (GLC) deposit ratings and a b1 standalone baseline credit assessment (BCA), equivalent to a standalone bank financial strength rating (BFSR) of E+. The ratings carry a stable outlook.
The assigned ratings reflect the bank's (1) well-established franchise in Angola and liquid balance sheet; (2) adequate buffers to absorb losses; (3) weak credit quality and high credit costs; and (4) the high probability of systemic support from Angolan authorities, in case of need.
Moody's also assigned B1/Not-Prime foreign-currency deposit ratings, with a positive outlook, in line with the positive outlook on Angola's Ba3 rating. The foreign-currency deposit ratings are constrained by Angola's B1 foreign-currency deposit ceiling, which captures foreign-currency transfer and convertibility risks.
BAI is domiciled in Luanda, Angola, and as of September 2013 had total assets of $11 billion.
