The rating upgrade to 'B3/Not Prime' from 'Caa1/Not Prime' reflects Nova KBM´s improved results during the assessment period. Moody´s expects that Nova KBM´s capital adequacy will remain strong in 2015, with its operations continuing to be characterised by limited lending growth and moderate profitability.
Moody´s expectations referred to above are already being realized: Nova KBM is delivering a stable, sound and profitable performance. For the first quarter of the year, it reported a net profit of nearly €11.9 million, compared to €12.3 million reported by the Nova KBM Group as a whole. Moreover, thanks to the successful implementation of appropriate cost-cutting measures, the operating costs incurred at the Nova KBM Group level were reduced by 4.7% compared to the same period a year ago.
