Moody’s reconfirms Altum’s Baa1 issuer rating and upgrades the baseline credit assessment to baa3 from ba2
On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed JSC Development Finance Institution Altum’s (Altum) Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to baa3 from ba2. The short-term issuer rating was affirmed at P-2.
The assigned Moody’s rating of Altum of Baa1 is one of the highest issuer ratings assigned to corporate entities in Latvia. Altum baseline credit assessment upgrade from ba2 to investment grade rating baa3 as follows from Moody’s assessment, represents:
- the strong financial profile of the company with very strong capitalization, large risk coverage reserve incorporated in the public funding as well as the funding reinvestment in implementation of new financial instruments products against moderate profitability and level of problem loans, as stipulated by Altum business specifics; and
- the unique standing of Altum in Latvia’s financial services industry reflecting its policy mandate to provide a distribution channel for state and EU program funds to both end-customers (business startups, small and medium corporates, farmers, etc.) and other financial institutions.”
Jānis Reirs, Minister of Finance:
“Development Finance Institution ALTUM, among financial service provides of Latvia, is an outstanding example of focused long-term development and innovative solutions to contribute to a strong financial standing. The very high rating assigned by Moody`s is a recognition of ALTUM’s sound corporate governance practice in the segment of state enterprises and its sustainable vision of its further activity and development of the national economy.”
Reinis Bērziņš, Chairman of ALTUM’s Board:
“The high investment-grade rating improves our efficiency in dealing with investors and our ability of raising funds in capital markets for financing sustainable business projects that are vital for the national economy.”
This action concludes the Moody’s review for upgrade initiated in December 2018 following the introduction of an updated Moody’s finance companies methodology. Moody’s initially assigned to Altum a long-term issuer rating Baa1 in June 2017.