Moody’s upgrades Investec

Moody's Investors Service said it upgraded the long-term ratings of Investec Bank plc.

The agency upgraded the bank's long-term deposit rating to A2 from A3 with a stable outlook, senior unsecured rating to provisional A2 from provisional A3, subordinated debt rating to Baa3 from Ba1, standalone baseline credit assessment (BCA) to baa2 from baa3 and counterparty risk assessment to A2(cr) from A3(cr).

At the same time, the agency upgraded the senior unsecured and issuer ratings of holding company Investec plc to Baa2 from Baa3; these ratings are under review for further upgrade.

Moody’s said the action reflects the continued improvement in the credit fundamentals of Investec Bank. The business now benefits from a substantial reduction in the bank's legacy business in the UK, in particular its commercial property lending risk. In total the bank's net portfolio of assets in run-off was £645 million at 30 September 2015, reduced from a net £2.2 billion in March 2014.

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