Moody’s gives Ba2 to Hoist Kredit

Moody's Investors Service said it assigned Ba2/Not Prime long-term and short-term first time issuer ratings to Hoist Kredit AB (publ).

The outlook is positive.

At the same time, the agency assigned a ba3 baseline credit assessment (BCA) and a counterparty risk assessment (CR Assessment) of Baa3(cr)/Prime-3(cr).

Moody’s said Hoist's baseline credit assessment (BCA) of ba3 is underpinned by a “strong” macro profile and sound capitalization, coupled with a solid retail deposit-based funding profile and sizeable liquidity portfolio. These strengths are counterbalanced by Hoist's monoline business model, the valuation and pricing risks associated with acquiring non-performing debt portfolios, as well as the concentration risk stemming from a limited number of suppliers.

The Ba2 long-term issuer rating takes into account the company's ba3 BCA, in conjunction with the agency’s view of a low loss given failure based on the protection provided to senior unsecured creditors by the group's senior and subordinated debt.

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