Moody’s ups Yorkshire Building debt

Moody's Investors Service said it upgraded the long-term local and foreign currency senior unsecured debt ratings of Yorkshire Building Society to A3 from Baa1.

The senior unsecured medium-term note rating was also upgraded to provisional A3 from provisional Baa1. All other ratings and its counterparty risk assessment were affirmed. YBS's baseline credit assessment (BCA) and adjusted BCA was unaffected.

The outlook on the long-term senior unsecured debt was changed to stable from positive, while the outlook on the long-term deposit rating remains stable.

Moody’s said the upgrade of the long-term senior unsecured debt ratings to A3 reflects the increased subordination protecting Yorkshire Building’s senior bondholders following the building society's £300 million Tier 2 debt issuance priced on Sept. 6, resulting in a one-notch uplift from the BCA of baa1 under Moody's advanced Loss Given Failure (LGF) analysis.

The Tier 2 issuance is part of Yorkshire Building’s funding plan aimed at compliance with the society's future Minimum Required Eligible Liabilities.

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