Moody's on June 15 placed KfW IPEX-Bank GmbH's A2 long-term bank deposit ratings on review for upgrade.
The outlook on the rating was stable prior to the review. The agency also placed the German lender's A2(cr) long-term counterparty risk assessment and "baa3" baseline credit assessment and adjusted baseline credit assessment on review for upgrade.
Moody's said the review was triggered by its reassessment of the bank's financial integration and dependency with state-owned parent KfW, while noting that KfW's ability to financially support the commercial banking unit KfW IPEX-Bank within European competition laws appears to be beyond the agency's earlier expectations. The review for upgrade will determine the extent to which these factors could back a closer conversion of the unit's ratings with those of its parent, the agency added.
At the same time, Moody's affirmed KfW IPEX-Bank's P-1 short-term bank deposit ratings and P-1(cr) short-term counterparty risk assessment.