Moody's upgrades Vseobecna Uverova

Moody's Investors Service said it upgraded to Aa1 from Aa2 the ratings of the mortgage covered bonds issued by Vseobecna Uverova Banka as.

Reduced cover pool losses triggered the upgrade to Aa1, which is the maximum rating achievable based on the current over-collateralization (OC), the agency said. The OC level consistent with the new Aa1 rating is 4%.

“The upgrade of VUB mortgage covered bonds' ratings was driven by legal amendments of the (i) Slovak deposit compensation scheme and (ii) the Slovak legal framework for covered bonds. The changes regarding the deposit compensation scheme came into force earlier this month, while the changes regarding the covered bond framework will come into force on July 8, 2022. Together with these legal changes, the progress regarding the amortization of still outstanding legacy hard bullet covered bonds supported the reduction of refinancing risk,” Moody’s said in a press release.

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