Liberbank : Credit opinion lowered to Negative but Buy recommendation maintained on contained downside risks for fundamentals and attractive relative value

Our previous positive credit opinion on Liberbank could no longer be sustained following the outbreak of the COVID-19 crisis and its economic fallout. Over the next 12-18 months, an improvement in Liberbank’s standalone credit profile is difficult to envisage given the substantial challenges incurred by the crisis and its expected impacts on Liberbank’s (and peers’) credit metrics. Fitch and Moody’s have both revised the outlook on Liberbank’s ratings to Negative (from Positive a...