Moody's on Oct. 18 affirmed BAWAG PSK's A2 long-term senior unsecured debt, issuer and deposit ratings, and revised the outlook on the ratings to stable from positive.

Moody's said the outlook revision on the Austria-based bank's long-term ratings reflects the agency's expectation of a decline in the probability of the bank sustainably improving further its stand-alone credit profile over the course of the 12 to 18 months outlook horizon following a decline in capital ratios towards the bank management's minimum target level upon completion of the acquisition of Südwestbank AG.

At the same time, Moody's affirmed BAWAG's P-1 short-term issuer and deposit ratings, baa1 baseline and adjusted baseline credit assessments, and A1(cr)/P-1(cr) long- and short-term counterparty risk assessments.