Moody's Upgrades Citadele's RatingsOn 6 December 2024 Moody's Ratings (Moody's) has announced the upgrade of Citadele's long-term deposit rating to Baa1 from Baa2, and the senior unsecured rating to Baa2 from Baa3. Following this, Moody's revised its rating outlook to stable
In explaining its rationale, Moody’s emphasized the enhanced asset quality, solid capitalisation, and strong profitability of Citadele Banka as key factors driving the upgrade. The bank’s non-performing loans have decreased to 2.0% as of September 2024, with expectations for these levels to remain low. Additionally, the Common Equity Tier 1 (CET1) ratio of 20.1% significantly surpasses regulatory requirements, underscoring its robust capital position. The stable outlook reflects Moody’s view that Citadele will maintain its solid financial position, supported by robust lending growth, sustained capital levels, and healthy profitability even amidst slight asset risks and higher operating taxes.
“Moody’s ratings upgrade and the stable outlook underscore the strength of our operations and our progress in executing our strategy. Despite challenges in the macroeconomic environment, we’ve demonstrated resilience through strong capitalisation, sustained profitability, and a robust credit profile,” said Rūta Ežerskiene, CEO and Chair of the Management Board of Citadele Banka.
Moody's upgraded Citadele’s senior unsecured rating to Baa2 from Baa3 and the long-term deposit ratings to Baa1 from Baa2. The Baseline Credit Assessment (BCA) and Adjusted BCA were upgraded to Baa3 from Ba1, and the bank's long-term Counterparty Risk Ratings (CRR) and Counterparty Risk Assessment (CR Assessment) were upgraded to A3 and A3(cr), from Baa1 and Baa1(cr), respectively. The short-term deposit ratings and CRRs were affirmed at P-2, and the short-term CR Assessment was affirmed at P-2(cr).
About the Citadele Group
Citadele’s, rated Baa2 (positive) by Moody’s, mission is to modernise the financial industry and offer more opportunities to private individuals and businesses throughout the Baltics. In the nine months ended 30 September 2024, Citadele issued EUR 944 million in new loans, with its total loan portfolio reaching EUR 3.1 billion, while total deposits reached EUR 3.9 billion. Alongside a modern universal banking platform, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments. Citadele was the first in the Baltics to introduce account opening with a selfie, payment rings and payments to mobile numbers. Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.
Ilona Frīdmane
Head of Investor Relations and ESG
Phone: +371 29483327
Email: investor.relations@citadele.lv
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