Following the downgrade of Societe Generale's bank financial strength rating by Moody's Investors Services, the agency has taken actions on the ratings of SG's units in CEE and the CIS. The BFSR of Komercni Banka was affirmed at 'C'; the outlook on the BFSR is stable. The global local currency long-term and short-term deposit ratings were affirmed at 'Aa3/Prime-1', stable outlook. The global long-term and short-term foreign currency deposit ratings were affirmed at 'A1/Prime-1' and remained constrained by the foreign currency deposit ceiling for the Czech Republic . The outlook on the 'A1' long-term global foreign currency deposit rating is positive, in line with the outlook on the sovereign ceiling for the Czech Republic .
Our view: We believe the news is mildly positive, however this follows the management comments on Thursday, that the bank will not be affected by the loss at (71 EUR, -4,24%). We do not expect the news to have a material impact on the stock trading as of today