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Moody's upgrades NordLB, units following €2.8B capital injection

Moody's on Jan. 9 upgraded several ratings of Norddeutsche Landesbank Girozentrale and some of its units after the German lender received €2.8 billion from its state owners and savings banks on Dec. 23, 2019 as part of a recapitalization package.

The rating agency upgraded the long-term counterparty risk ratings of NordLB, NordLB - New York Branch, Deutsche Hypothekenbank AG and NordLB Luxembourg SA Covered Bond Bank to A3 from Baa2 and their long-term counterparty risk assessments to A3(cr) from Baa2(cr). The entities' short-term counterparty risk ratings and assessments were affirmed at Prime-2 and P-2(cr), respectively.

Also upgraded were the long-term deposit and issuer ratings of NordLB, Deutsche Hypo, NordLB Luxembourg SA Covered Bond Bank to A3 from Baa2, with a stable outlook. The ratings were placed under review in December 2018.

The three entities' short-term deposit ratings were affirmed at P-2, as well as the short-term issuer ratings of Deutsche Hypo and NordLB Luxembourg SA Covered Bond Bank.

The rating agency also upgraded the baseline credit assessments of NordLB, Deutsche Hypo and NordLB Luxembourg SA Covered Bond Bank to "ba3" from "b2" and their adjusted baseline credit assessments to "ba1" from "ba3".

Also upgraded were the senior unsecured regular debt ratings of NordLB and Deutsche Hypo to A3 from Baa2, with a stable outlook.