Bloomberg News

Komercni Cut to ‘Hold’ at Raiffeisen as Greek Losses Loom

October 17, 2011

(Updates with closing price in second paragraph.)

Oct. 17 (Bloomberg) -- Komercni Banka AS was downgraded to “hold” from “buy” at Raiffeisen Research, which said the Czech unit of Societe Generale SA is likely to take more losses on Greek government bonds and reduce its dividend.

Raiffeisen lowered its price estimate for Komercni shares to 3,750 koruna from 3,800 koruna and cut the projected dividend to 200 koruna from 230 koruna, according to a report today from analyst Stefan Maxian in Vienna. The stock rose 0.6 percent to 3,500 koruna at its 4:24 p.m. close in Prague.

Komercni Banka may write down an additional 2 billion koruna ($111 million) of its 7 billion-koruna portfolio of Greek debt this year after taking a 1.66 billion-koruna impairment in the second quarter, Maxian said. Investors may be required to shoulder a 50 percent cut in the value of Greek debt, Komercni chief Henri Bonnet told Hospodarske Noviny newspaper last week.

“We have adjusted our 2011 estimates accounting for an additional 2 billion-koruna impairment of Komercni Banka’s Greek exposures, which should have been already digested by the market,” Maxian said in the report.

--Editors: Linda Shen, Peter Branton

To contact the reporter on this story: Krystof Chamonikolas in Prague at

To contact the editor responsible for this story: Gavin Serkin at

The Good Business Issue
blog comments powered by Disqus