Moody’s boosts de Volksbank

Moody's Investors Service said it upgraded de Volksbank NV's local-currency junior senior unsecured, also referred to as senior non-preferred, debt rating to Baa1 from Baa2, and its local- and foreign-currency junior senior unsecured medium-term note program ratings to (P)Baa1 from (P)Baa2 previously. Moody's also changed the outlook to stable from positive.

Additionally, Moody's affirmed the bank's local-currency subordinated debt rating of Baa2, its local currency subordinate MTN program rating of (P)Baa2, and its local-currency preferred stock non-cumulative rating of Ba1(hyb).

“The upgrade of the rating to Baa1 from Baa2 previously reflects the increase in the volume of subordination to the junior senior unsecured debt following the issuance of additional tier 1 by the bank in 2022. In addition, Moody's expects a further increase in the instrument's volume as illustrated by the issuance of €500 million junior senior unsecured debt in February 2023, the agency said in a press release.

The stable outlook mirrors the view that the bank's asset risk will remain minimal, and its capital buffer will remain robust, the agency said.

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