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Moody’s set to downgrade 3 top banks

Customers queue at an Equity  ATM in Nairobi. PHOTO/FILE
Customers queue at an Equity ATM in Nairobi. PHOTO/FILE 

Global ratings agency Moodys has warned of a likely downgrade of credit and deposit scores of three Kenyan banks, citing the country’s deteriorating debt situation.

The agency said it had placed on review for downgrade the B1 global scale long-term local-currency deposit ratings and the b1 baseline credit assessment (BCA) of KCB Bank Kenya Limited (KCB Bank) #ticker:KCB, Equity Bank Kenya Limited (Equity Bank) #ticker:EQTY, and Co-operative Bank of Kenya Limited (Co-op Bank) #ticker:COOP.

“Today’s rating action is driven primarily by a potential weakening of the Kenyan government’s credit profile, in particular in the country’s fiscal strength and liquidity risk, as captured by Moody’s recent decision to place Kenya’s B1 government ratings on review for downgrade,” agency said in a statement.

Moody’s said the three banks’ sizable holdings of sovereign debt securities exposed their creditworthiness to that of the government.