"Moody's explains the upgrade of Citadele bank's rating with the improvement of the bank's financial results and profitability as well as the increase in its loan portfolio quality and private investors becoming Citadele's shareholders which results in its ability to shape a stronger capital base," the bank said.
"The fact that one of the world's leading rating agencies has upgraded Citadele's rating confirms that the bank is developing in the right direction and that Citadele’s growth opportunities are benefitting from the change of shareholders," said Guntis Beļavskis, Citadele bank's CEO in response to the news.
In its announcement, Moody's remarks that the bank's new owners have already proven their willingness to strengthen Citadele's capital and the agency appreciates the fact that the bank's shareholders have already increased Citadele's capital by EUR 10 million and have re-financed the subordinated loan. As a result, Citadele's capital has increased by a total of €19 million.
As reported previously, Citadele Group completed 1Q 2015 with €7.6 million profit, a 30% increase compared to the same period in 2014. In turn, according to unaudited Citadele's performance results, the bank itself completed the first quarter of this year with a EUR 5.4 million profit, which is a 6 % decrease compared to 1Q 2014.
Formed from part of the wreckage of the collapsed Parex bank, which became a byword for reckless lending and irresponsible behavior, Citadele was formed under state control and its sale for €75m to a group of investors formed around Ripplewood of the US was completed in April this year.
