Moody’s downgrades outlook for Czech banking sector

The international rating agency Moody's Investors Service has downgraded its outlook for the Czech banking sector from positive to stable. The change is mainly due to the slowdown in the country’s economic growth, the Czech News Agency reports. Moody’s said on Monday that after years of rapid loan growth, it expects a slight deterioration in the quality of its loan portfolio in the Czech Republic.

The New York-based bond credit rating business continues to see the country’s credit rating as one of the best in Central and Eastern Europe, but it expects Czech GDP growth to decelerate from last year’s 2.9 percent to 2.7 percent this year, with a further 0.2 percent decrease in 2020.