Bank of Valletta yesterday announced that Moody's Investors Service, the international credit rating agency, have kept their ratings for the bank unchanged following a comprehensive annual review carried out earlier this year. The ratings are: bank deposits - long-term/short-term: A3/P-2; bank financial strength: D+.

BoV chairman Joseph F.X. Zahra, expressed his satisfaction at Moody's assessment, adding that it was clear that the rating agency acknowledged the bank's continued efforts to consolidate its position as a leading player in the Maltese economy.

Moody's have commented on the bank's strong position in the local market and its increased earning power following the positive results announced for the financial year ended September 30.

Mr Zahra said BoV's positive performance confirms the validity of its strategy, especially when seen in the light of the general slowdown witnessed not only in the local economy but also in the economies of all its major trading partners. The bank has not been insulated from the negative trends that have been afflicting these economies for the past few years and its robust performance therefore assumes greater significance.

Moody's commented on the fact that credit quality remained under pressure, denting bottom-line profitability. It was also evident that operating in a small, highly concentrated and still rather protected economy may continue constraining BoV's lending opportunities.

Besides, with the liberalisation of all sectors of the Maltese economy - including the banking sector - the domestic environment was becoming increasingly competitive.

Mr Zahra said the bank was however well placed to meet the challenges that would present themselves in the future, especially with Malta's entry into the European Union, but would also be seeking to fully exploit the vast opportunities that would undoubtedly arise, for the benefit of its shareholders, customers and staff.