Moody's raises apoBank’s rating by one notch to "A1"

07.05.2014

Moody's has upgraded the rating for apoBank. This was announced by the agency today. The long-term debt and deposit ratings were raised by one notch from "A2" to "A1". Concurrently, the agency upgraded the bank’s stand-alone bank financial strength rating (BFSR) by one notch to C-. The outlook for the ratings remains "stable".

Moody's says that the upgrade reflects the bank's continued reduction of higher-risk legacy assets and strongly improved capital ratios at a pace beyond the rating agency’s previous expectations. apoBank’s essentially completed divestment of non-core legacy risk portfolios has materially reduced asset quality-related vulnerabilities. In parallel, apoBank continued to strengthen both quantity and quality of its capital base.

The new ratings are:

Senior debt and deposits: raised to A1
Short term debt: Prime 1
Standalone BFSR / BCA: raised to C- / baa2
Subordinated debt: raised to A3
Preferred securities: raised to Baa2 (hyp)
Outlook: stable