Moody’s rates Hoist Kredit debt Ba2, B1

Moody's Investors Service said it assigned provisional Not Prime short-term, provisional Ba2 long-term senior unsecured and provisional B1 subordinated ratings to the new €750 million euro medium-term note program of Hoist Kredit AB (publ).

The agency expects to assign ratings to both senior unsecured and dated subordinated bonds to be issued under the program.

Concurrently, Moody's placed the provisional Ba2 senior program ratings and Hoist's existing Ba2 long-term issuer ratings under review for upgrade.

The baseline credit assessment (BCA) and adjusted BCA were affirmed at ba3 and the long- and short-term Counterparty Risk Assessment at Baa3(cr)/Prime-3(cr).

The action follows the announcement of the note program.

The provisional Ba2/provisional NP senior ratings of the new program are aligned with Hoist's Ba2/NP issuer ratings.

Hoist is domiciled in Sweden, a jurisdiction subject to the EU Bank Recovery and Resolution Directive (BRRD), which Moody's considers to be an Operational Resolution Regime. Moody's applies its Advanced Loss Given Failure (LGF) analysis to Hoist, because it is a regulated credit market company, not exempted from BRRD. Particular to Hoist, Moody's assumes for the purpose of its LGF analysis that Hoist does not source deposits considered junior, due to the company's retail-oriented deposit base.

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