Moody’s upgrades Raiffeisen Bank

Moody's Investors Service said it upgraded Raiffeisen Bank SA's long-term and short-term local and foreign-currency deposit ratings to Baa3/Prime-3 from Ba1/Not Prime.

Concurrently, the agency upgraded the bank's adjusted baseline credit assessment to ba2 from ba3 and its long-term and short-term counterparty risk assessment to Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr).

The outlook on Raiffeisen Bank and its long-term deposit ratings was changed to stable from positive.

This action reflects the upgrade of Raiffeisen Bank's parent Raiffeisen Bank International AG's (RBI; Baa1 stable/Baa1 stable; ba2) baseline credit assessment to ba2 from ba3.

Moody’s said the upgrade of the bank's deposit ratings, adjusted baseline credit assessment and counterparty risk assessment reflects RBI's baseline credit assessment upgrade to ba2 from ba3, which leads to a one-notch of parental support uplift for Raiffeisen Bank.

Previously the two banks' baseline credit assessments were positioned at the same level of ba3, hence Raiffeisen Bank’s ratings did not benefit from parental support uplift.

Moody's said it considers the Romanian operation as an important part of RBI and expects high level of parental support in case of need.

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