S&P lifts UniCredit Bank

S&P said it raised the long-term issuer credit ratings on UniCredit Bank AG and its subsidiary, UniCredit Luxembourg SA, to BBB+ from BBB.

The outlooks on both banks are developing.

S&P also said it affirmed the A-2 short-term issuer credit ratings on these banks.

The agency also raised to BBB+ from BBB the issue ratings on UniCredit Bank's senior unsecured instruments and raised to BBB from BBB- the issue ratings on instruments classified as senior subordinated debt.

S&P also said it raised by one notch the ratings on UniCredit Bank's other subordinated and junior subordinated issues.

The upgrades reflect a view that the potential negative impact on UniCredit Bank's creditworthiness from pressure on UniCredit SpA, the agency explained.

This follows the parent's recent upgrade to BBB and A-2 from BBB- and A-3.

S&P said it removed the one-notch downward adjustment that used to capture the risk that weaker credit conditions at the parent level might negatively affect the higher-rated German subsidiary.

The upgrade also stems from a continued expectation that UniCredit Bank and its parent would be subject to separate resolution processes, which allows the agency to rate UniCredit Bank above its parent, S&P added.

The ratings also reflect the bank's solid business in Germany, particularly in corporate and commercial banking, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.