On 23 April 2020, FIMBank plc issued an announcement providing a summary of the latest assessment of Fitch Ratings (‘Fitch’) on FIMBank as a result of which it downgraded its long-term Issuer Default Rating on the bank to ‘B+’ from ‘BB-‘, coupled with a ‘negative’ outlook.
Fitch anticipates a severe downturn in the global economy in 2020, in particular as a result of the disruption caused by the ‘COVID-19’ pandemic. Against this background, Fitch highlighted that its actions on FIMBank were driven by heightened pressures on the bank’s business model, continued asset-quality deterioration and weakened profitability, as also reflected in the bank’s results for the 2019 financial year. Moreover, the ‘negative’ outlook reflects Fitch’s view that the economic and financial-market fallout from the ‘COVID-19’ will create additional downside risks to FIMBank’s business model stability, asset quality and earnings.
FIMBank concluded by saying that it is closely monitoring developments on the impact of ‘COVID-19’ on the global economy. Whilst on the basis of currently available information it is not in a position to assess the likelihood and/or magnitude of the outcome of ‘COVID-19’ on its operations, FIMBank noted its commitment to ensuring that it will respond to developments as they unfold, taking timely and appropriate actions when necessary in particular to the safeguard of the Group’s liquidity and capital adequacy.