Moody’s upgrades immigon to B1

Moody's Investors Service said it upgraded the long-term deposit, senior unsecured debt and issuer ratings of immigon portfolioabbau ag to B1 from Caa1.

The outlook is stable.

The agency also upgraded the wind-down entity's standalone baseline credit assessment and its adjusted BCA to caa1 from caa3 and its long-term counterparty risk assessment to B1(cr) from B3(cr).

Furthermore, Moody's upgraded immigon's senior subordinate and subordinate ratings and Investkredit Bank AG's (assumed by immigon's legal predecessor Oesterreichische Volksbanken AG in September 2012) backed subordinated debt ratings to Caa1 from Ca, while immigon's hybrid capital instruments – or other issuing entities of the group – which continue to be rated on an expected loss basis were affirmed at C (hyb), reflecting an unchanged expected loss severity.

The short-term Not-Prime deposit ratings, provisional Not-Prime program ratings as well as its Not-Prime(cr) CR assessment were unaffected by this action.

Moody’s said the upgrade of the long-term ratings follows the positive impact from the agency’s reassessment of immigon's progress in its wind-down process and reflects: (a) immigon's standalone financial profile, which now operates with improved capital and substantial liquidity buffers; and (b) the protection offered to creditors more senior in the creditor hierarchy, as captured by Moody's Advanced Loss-Given-Failure (LGF) liability analysis in light of immigon's significant deleveraging.

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