Moody's upgraded Principality Building Society's long- and short-term counterparty risk assessments to A2(cr)/P-1(cr) from A3(cr)/P-2(cr).

The agency affirmed the company's long- and short-term bank deposits at Baa2/P-2, with a stable outlook on the long-term rating.

At the same time, Moody's assigned a Baa2 rating, with a stable outlook, to the £300 million senior unsecured bond that Principality Building Society plans to issue on Nov. 23, with proceeds to be used for financing growth and boosting liquidity buffers. The upgrade reflects the increased subordination that will protect the firm's counterparty obligations following the issuance.