Moody's on May 21 upgraded Germany-based ING-DiBa AG's long-term counterparty risk assessment to Aa2(cr) from Aa3(cr) and its long-term counterparty risk ratings to Aa3 from A1.
The bank's baseline credit assessment was affirmed at "a2," reflecting Moody's view that while ING-DiBa's stand-alone intrinsic strength is weaker than previously assessed, its financial profile remains materially stronger than that of fundamentally weaker-rated parent ING Bank NV.
Moody's also affirmed the lender's A2 long-term bank deposit ratings, with a stable outlook, reflecting the affirmed baseline credit assessment as well as the results of the agency's advanced loss-given-failure analysis, which continues to show moderate loss-given-failure assumption for institutional deposits, given that ING-Diba is almost exclusively deposit funded and has no market funding to provide a loss-absorbing cushion for depositors in case of failure.
The upgrade of the long-term counterparty risk ratings and long-term counterparty risk assessment reflect the improved results of the LGF analysis, as well as Moody's forward-looking view combined with already issued subordinated debt instruments, which parent ING Bank subscribed.
ING-DiBa's short-term bank deposit ratings and short-term counterparty risk ratings were affirmed at P-1, along with its short-term counterparty risk assessment of P-1(cr) and adjusted baseline credit assessment of "a2."