Moody's affirms AS “Latvijas Krājbanka” short-term deposit rating and changes outlook on long-term deposit rating

Moody's Investors Service changed the outlook on AS “Latvijas Krājbanka”
(hereinafter referred to as - Latvijas Krājbanka) D- bank financial strength
rating (“BFSR”) and Ba2 long-term deposit ratings to negative from stable. The
bank's Not Prime short-term deposit rating was affirmed. 

Moody's recognises that Latvijas Krājbanka benefits from a large deposit base,
which accounted for 92% of its total funding at end-September 2008. As a
result, its liquidity profile is not exposed to the risk of being unable to
meet its debt repayments in the near term. 

The rating agency cautions that a downgrade of Latvijas Krājbanka's BFSR and
deposit ratings could be prompted by a potential weakening of its asset
quality, or a tightening of its liquidity profile given the current challenging
market conditions in the Latvian banking sector. 


Kristīne Ozolniece
AS “Latvijas Krājbanka”
The expert of public relations
Phone: 67068031
Mobile: 25912461
E-mail: kristine.ozolniece@lkb.lv