Business • December 28 2003

Moody’s maintains BOV’s A3 rating

Moody’s Investors Service the international credit rating agency this week maintained its ratings for the Bank following a comprehensive annual review carried out earlier this year. The ratings are: Bank Deposits – Long Term/Short Term: A3/P-2; and Bank Financial Strength: D+
The Chairman of Bank of Valletta, Joseph F. X. Zahra, expressed his satisfaction at the assessment carried out by Moody’s adding that it is clear that the rating agency has acknowledged the Bank’s continued efforts to consolidate its position as a leading player in the Maltese economy. Moody’s have, in fact, commented on the Bank’s strong position in the local market and its increased earning power following the positive results announced for the financial year ended 30 September 2003.
Mr. Zahra said that Bank of Valletta’s positive performance confirms the validity of its strategy, especially when seen in the light of the general slowdown witnessed not only in the local economy but also in the economies of all our major trading partners.
The Bank has not been insulated from the negative trends that have been afflicting these economies for the past few years and its robust performance therefore assumes greater significance. Moody’s have commented on the fact that credit quality remains under pressure denting bottom-line profitability. Furthermore, it is evident that operating in a small, highly concentrated and still rather protected economy may continue constraining BoV’s lending opportunities. Besides, with the liberalisation of all sectors of the Maltese economy – including the banking sector - the domestic environment has become increasingly competitive.
The Chairman said that the Bank however is well placed to meet the challenges that will present themselves in the future especially with Malta’s entry into the European Union, but will also be seeking to fully exploit the vast opportunities that will undoubtedly arise, for the benefit of its shareholders, customers and staff.