Moody's confirms ACLEDA Bank's ratings

Moody's Investors Service has confirmed ACLEDA Bank Plc's (ACLEDA Bank) local currency deposit and issuer ratings of Ba1 with a stable outlook. The rating action concludes the review initiated on May 20, 2009 to examine the probability of the systemic support assumption used in Moody's Joint-Default Analysis (JDA) application. The bank's other ratings are unaffected and continue to carry a stable outlook. They are its bank financial strength rating of D; foreign currency long-term deposit rating of B3; foreign currency long-term issuer rating of B1; and local and foreign currency short-term issuer and deposit ratings of Non-Prime. In May 2009, Moody's commented -- in a global review -- on the support capacity of a government and a central bank for its banking system in the Special Comment titled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries." "Consistent with the analytical criteria specified in that report and in light of Cambodia's current situation and prospects, Moody's has concluded that the systemic support input for Cambodian bank ratings should be changed from Ba1 to B1. The revised input is still one notch above the country's local currency government debt rating of B2," says Christine Kuo, a Moody's Vice President and Senior Analyst. "The adjustment in the systemic support input has negative implications for ACLEDA Bank's local currency deposit and issuer ratings. But the potential shareholder support -- which continues to be incorporated in its ratings -- is sufficient to lift the bank's long-term local currency deposit and issuer ratings by one notch to Ba1 from its baseline credit assessment of Ba2 ," adds Kuo.

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