DBRS Morningstar on Oct. 23 upgraded the long- and short-term issuer ratings of Permanent TSB Group Holdings PLC to BB (high)/R-3 from BB/R-4.
The agency also upgraded Permanent TSB Group unit Permanent TSB PLC's long- and short-term issuer ratings to BBB (low)/R-2 (middle) from BB (high)/R-3. Additionally, its long- and short-term deposits ratings were also upgraded to BBB (low)/R-2 (middle), while its long-term senior debt rating was upgraded to BBB (low).
The unit's intrinsic assessment was raised to BBB (low) from BB (high), while its support assessment remains at SA1. The group's support assessment is SA3. DBRS Morningstar said the trend on all of the ratings is now stable.
The rating upgrades reflect the significant reduction of the group's nonperforming loans via multiple sales over the last 18 months and its inaugural issuance of minimum requirement for own funds and eligible liabilities, or MREL, eligible senior debt in October — demonstrating its improved market access. The rating agency believes the group is poised to increase its lending and strengthen its profitability, one of its main challenges, based on lower NPLs from the sales, which has resulted in a significantly better capital position for it.