Moody's affirms ratings of NCB, Samba following potential merger pact

Moody's Investors Service affirmed all ratings and assessments of National Commercial Bank (NCB) and Samba Financial Group (Samba), including their long-term and short-term deposit ratings at A1/P-1, and Baseline Credit Assessments (BCA) at baa1 and a2 respectively.

The outlook on the long-term deposit ratings for both banks remains negative, it said in a statement on Tuesday.

The rating action follows the announcement that the two banks have entered into a binding merger agreement on Oct. 11, 2020. The merger remains subject to regulatory and shareholder approvals and is expected to be completed in the first half of 2021.

Upon completion, NCB will remain as the operating entity and will acquire all of Samba's liabilities and assets in exchange for new NCB shares issued to Samba's shareholders.