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Moody’s: Bank Of Cyprus In A Better Position To Deal With COVID Downturn Due To New Bad Loan Portfolio Sale
January 22, 2021
Moody’s rating agency says that the new sale of a bad loan portfolio by the Bank of Cyprus, puts the bank in a better position to deal with an inflow of new NPEs arising from the coronavirus-induced economic downturn, a fact that is a credit positive.
Moody’s issued a comment on the bank after the sale on 18 January, of and additional portfolio of non-performing loans with a gross book value of €545 million, to funds affiliated with Pacific Investment Management Company LLC (PIMCO), a global fixed-income investment manager.
“The transaction, part of the bank’s balance sheet de-risking efforts, will further reduce its high stock of legacy non-performing exposures (NPEs), while also better positioning it to deal with an inflow of new NPEs arising from the coronavirus-induced economic downturn, a credit positive”, notes Moody’s.