In the communiqué, Moody's explains that this action, which is not a downgrade, but the previous step, focuses on Banco Angolano de Investimentos (BAI), Banco de Fomento Angola (BFA) and Banco Económico (BE), the first two with level B3 and the third with level Caa1, all with speculative level.
"The main motivation for these rating actions is the increasingly uncertain operating environment in Angola, which results from the sharp drop in oil prices and the banks' strong exposure to the country, mainly in the form of significant assets linked to public debt, which link the banks' credit profile to the government's credit profile," reads the note sent to Lusa.
The decision comes in the same week that Moody's put the Republic's rating on the downside, a process during which the agency will review the government's response to changing economic and financial conditions and then decide by the summer on the quality of sovereign credit.
"During the review period, Moody's will assess the impact of economic degradation on banks' asset quality, capitalisation and foreign currency liquidity, the government's response to the shock - which will serve as a benchmark for the Republic's rating - and any change in the government's willingness to help banks in need," the text also states.
The deterioration of the banks' operating environment is closely linked to the fall in the price of oil, says Moody's, which revised the average price per barrel down to 40-45 dollars this year and 50-55 dollars in 2021.
