The agency withdrew the D+ standalone bank financial strength rating, the Baa2/Prime-2 long and short-term global local currency (GLC) deposit ratings, and the Ba1/Not Prime long and short-term foreign-currency deposit ratings.

"Moody's Investors Service has withdrawn the credit ratings for its own business reasons," the agency said, adding that "ZABA's ratings were affirmed before being withdrawn and that at the time of withdrawal all ratings had a stable outlook."

Business reasons for rating withdrawal may include "cases of redundant credit ratings, a credit rating assigned as the result of a clerical error and/or a request by the issuer" and "generally do not reflect any concerns about the issuer's creditworthiness or the quality of its management."

Moody's expects that credit conditions in Croatia will remain weak in 2011 in light of a slow economic recovery, which will maintain pressure on local banks' asset quality and performances. The rating agency expects that ZABA's non-performing loans will continue to rise at least during the first half of the year, although its strong capitalisation affords it a good buffer to absorb anticipated asset quality pressures.