Moody’s raises outlook for apoBank to "stable"

03.12.2013

Positive business performance confirmed

Due to the positive business performance of apoBank, the rating agency Moody’s today raised apoBank’s outlook from negative to stable. Its long-term A2 rating was confirmed.

At the same time, the agency raised apoBank’s standalone financial strength rating (BFSR) from D to D+. In line with the rating methods, the ratings for subordinate debt and non-cummulative preferred securities were also raised by one notch to Baa1 and Baa3 respectively.

Moody’s justification for the rating change was that apoBank had tangibly strengthened its core profitability and reduced higher-risk assets in conjunction with a considerable improvement in its capital ratios.

According to Moody’s, the Bank had become more resistant due to its positive business performance and is now able to generate additional internal capital. The reduction in the structured securities sub-portfolio also had a positive effect in this respect.

The new ratings are:

Senior debt and deposits: affirmed at A2
Short term debt: affirmed at Prime 1
Standalone BFSR / BCA: raised to D+ / ba1
Subordinated debt: raised to Baa1
Preferred securities: raised to Baa3 (hyb)
Outlook: stable