Moody’s Investors Service has downgraded three Kenyan banks from B1 to B2.
Kenya Commercial Bank, Equity Bank and Co-operative Bank have been downgraded on the grounds of weakening credit profile in the country.
The move by Moody’s relates to the long-term local current ratings.
“Moody’s Investors Service has downgraded to B2 (stable outlook) from B1 (rating under review outlook,” said Moody’s.
According to Moody’s, the downgrading is as a result of the downgrade of the issuer rating of the Kenyan government given earlier during the week.
“The erosion of financial metrics and the rising liquidity risks, all relating to debt levels has contributed to the lower rating of the banks,” said Moody’s.