S&P: MDM Bank view to negative

Standard & Poor's said it revised the outlook on MDM Bank to negative from stable.

The BB- long-term and B short-term counterparty credit ratings were affirmed.

The outlook revision reflects concerns regarding further possible deterioration of MDM Bank's financial profile and business position, S&P said.

If the bank continues losing market share, particularly in customer deposits, the agency said it may revise the assessment of its systemic importance to low from moderate.

The bank is still in the process of working out the legacy problem loan portfolio stemming from the economic crisis in 2008 and 2009, S&P said.

These loans continue to hamper MDM Bank's financial results and new business growth, the agency said.

However, S&P added that the bank's capital position provides a sufficient cushion against possible deterioration of asset quality.

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