On 2 February 2024 Moody’s Investors Service (Moody’s) affirmed the rating of JSC “Development Finance Institution ALTUM” (ALTUM) at Baa1 long-term issuer rating with outlook stable following update of rating methodology. The rating is the same as affirmed in December 2022, along with updated credit opinion published on 4 September 2023. Short-term issuer rating is also affirmed at the same Prime-2.

At the same time, Moody’s has removed the designation of ALTUM as a government-related issuer and has withdrawn its Baseline Credit Assessment (BCA) of baa3, following the publication of Moody’s updated Government-Related Issuers (GRI) methodology on 25 January 2024. Moody’s has clarified the scope of the updated GRI methodology and as such ALTUM is rated by Moody’s Finance Companies Methodology only.

The assigned Moody’s rating of ALTUM of Baa1 is one of the highest issuer ratings assigned to corporate entities in Latvia. ALTUM’s baa3 standalone assessment as follows from Moody’s assessment, represents:

• “the sound financial profile, with very strong capitalization, high provisioning coverage incorporated into its funding programmes, and low refinancing risk. Such strengths are balanced against high problem loan levels and low profitability; and
• the unique standing of Altum in Latvia, reflecting its policy mandate to provide a distribution channel for state and EU programme funds to both end-customers and other financial institutions.”

Reinis Bērziņš, Chairman of the Management Board of Altum:

“The high rating of Baa1, even after the updated methodology, once again confirms the resilience of ALTUM's financial strategy and the strength of its risk management system. ALTUM will continue to focus on promoting economic growth by implementing state support programs and adhering to the highest standards of risk management and financial governance.”

Moody’s initially assigned to ALTUM a long-term issuer rating Baa1 in June 2017.

ALTUM is a Latvian state-owned company providing enterprises and households access to financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 16 December 2022 Moody’s Investors Service (Moody’s) affirmed the Company’s Baa1 long-term issuer rating, with outlook stable, same as affirmed on 25 March 2019. The baseline credit assessment (BCA) was also affirmed at baa3, together with the short-term issuer rating at P-2. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga.

         Laura Lapkovska
         AS Attīstības finanšu institūcija Altum Investors Relationships Division
         Tel.: +371 26165699
         E-mail: Laura.Lapkovska@altum.lv