Moody's cuts outlook for Kenya banks to negative on Treasury bond exposure

The Central Bank of Kenya building in Nairobi. FILE PHOTO | NMG

Top banks’ large exposure to government securities poses a risk to their credit profile, global ratings agency Moody’s has warned, citing the link between their rating and that of the State now with a negative outlook.

The agency, however, says the banks retain resilient financial profiles despite a challenging operating environment, thanks to their deposit-funded profiles, strong liquid assets and high profitability.

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