S&P Global Ratings on July 25revised the outlook on VP BankAG to stable from negative and affirmed the lender's long- andshort-term counterparty credit ratings at A-/A-2.

The ratings actions reflect the agency'sview that while VP Bank's risk position and stand-alone credit profile haveimproved due to management efforts, potential extraordinary support fromLiechtenstein will likely diminish by 2016-end when the Europe-wide bankrecovery and resolution directive is adopted in the country.

S&P incorporated transitionalone-notch negative adjustment in the ratings, reflecting that it could removethe one notch of systemic support by 2016-end if it sees a greater likelihoodof senior unsecured creditors incurring losses if the bank were to fail. Thestable outlook indicates that S&P is likely to remove both the downwardtransitional notch and the one notch of government support by 2016-end.

S&PGlobal Ratings and S&P Global Market Intelligence are owned by S&PGlobal Inc.