DRBS confirmed the BBB (low)/R-2 (middle) long- and short-term issuer ratings of Kommunalkredit Austria AG and revised the trend on the ratings to stable from negative.

The bank's intrinsic assessment remains at BBB (low) while its support assessment remains at SA3.

The trend revision reflects the progress the bank has made in developing its infrastructure lending franchise, along with its improved core profitability, the strong asset quality of its legacy and newly originated portfolios and its continued robust liquidity profile, the rating agency said, noting that while Kommunalkredit Austria's capital ratios are high, its capital base remains small.