Moody's on June 1 affirmed Bawag PSK's A2/P-1 long- and short-term local- and foreign-currency bank deposit ratings and revised the outlook on the long-term ratings to positive from stable.
The agency also affirmed the Austrian bank's A2/P-1 long- and short-term local- and foreign-currency issuer ratings and A2 long-term senior unsecured local- and foreign-currency debt ratings. The outlook on the long-term ratings remain stable.
Bawag's "baa1" baseline credit assessment and adjusted baseline credit assessment and A1(cr)/P-1(cr) long- and short-term counterparty risk assessments were also affirmed by the rating agency.
The outlook revision reflects good progress in Bawag's integration of acquisition targets, which according to the agency is raising the company's chances of making further improvement in establishing a competitive banking platform in Germany over the course of the 12 months to 18 months outlook horizon.
The positive outlook is also based on the agency's expectation that Bawag would maintain a meaningful cushion of loss-absorbing subordinated and equal-ranking liabilities within its liability structure.
