Moody's on Oct. 18 upgraded the deposit ratings of Bank Millennium SA to Baa2/Prime-2 from Baa3/Prime-3, with a positive outlook on the long-term ratings.

At the same time, the rating agency upgraded the Millennium BCP unit's long-term counterparty risk assessment to Baa1(cr) from Baa2(cr), long-term counterparty risk ratings to Baa1 from Baa2 and baseline and adjusted baseline credit assessments to "ba1" from "ba2."

The agency affirmed the Polish bank's short-term counterparty risk assessment at Prime-2(cr) and short-term counterparty risk ratings at Prime-2.

The upgrade of the bank's baseline credit assessment reflects the progressive strengthening of the parent bank's credit profile, reflected in its Oct. 16 upgrade, and acknowledges Bank Millennium's overall stronger and more resilient financial fundamentals as compared to the weaker stand-alone profile of Millennium BCP. The upgrade of the long-term deposit ratings comes in the wake of a similar action on the baseline credit assessments.