Moody’s lifts Volksbank Wien deposits

Moody's Investors Service said it upgraded Volksbank Wien AG’s long-term deposit ratings to Baa1 from Baa2 and affirmed its A2(cr)/P-1(cr) counterparty risk assessments and short-term P-2 deposit ratings.

The outlook on the long-term deposit ratings changed to stable from ratings under review.

This action concludes the review for upgrade on Volksbank Wien’s long-term deposit ratings, initiated on Sept. 19, following the bank's announcement to issue up to €400 million subordinated debt obligations.

Moody’s said the upgrade reflects the reduction of the expected loss severity for these liabilities following the shift in Volksbank Wien’s funding structure due to the successful placement of subordinated debt, which will increase the outstanding volume of instruments that absorb losses prior to deposits.

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