Bank of Valletta has decided to discontinue using Moody's rating service as part of its cost-cutting strategy, the bank said yesterday.

Following press reports that the international credit rating agency had withdrawn ratings for BoV, the bank issued a statement yesterday to clarify the decision.

"This was purely a business decision, taken by BoV as part of its ongoing cost-optimisation strategy," the bank said.

"BoV is already rated by Fitch ratings, which is the largest international credit rating agency in the financial services sector. It was therefore felt unnecessary to retain a second rating agency, with all the additional costs this entails, and the bank has informed Moody's accordingly."

BoV currently has an A- rating by Fitch. Moody's last rating for the bank was A3.

Earlier this week, Moody's said it had withdrawn BoV's rating "with the consent of both parties" and that the move did not reflect on the bank's creditworthiness.

After announcing profits of €81.8 million for the year ended September 30, last Friday, more than double the €40.6 million profit registered in 2008, BoV's share price rose by 13.8 per cent in the following two trading days. Significantly, other share prices were buoyed by news of the marked improvement in the bank's profitability.

BoV chairman Roderick Chalmers tells The Times Business in an interview today that sound banks are in everyone's interest.

As Malta's largest financial institution, BoV played a pivotal part in the economy, the chairman said, emphasising that the bank is profitable, making loans available to the business community, paying dividends to shareholders and taxes to government, and still adding people to its payroll.