Fitch lifts BayernLB

Fitch Ratings said it upgraded Bayerische Landesbank’s (BayernLB) viability rating to BBB from BB+ and affirmed its long-term issuer default rating at A- with stable outlook.

The short-term issuer default rating also was affirmed at F1.

The ratings are driven by institutional support from the bank’s owners, Fitch said.

The upgrade of the viability rating primarily reflects the removal of legacy risks as a result of the resolution of BayernLB’s claims against HETA Asset Resolution AG, which positively impacts the bank’s asset quality and capitalization, Fitch said.

A stable earnings base over the last 12 months also improved the bank’s business profile, the agency said.

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