Moody's on Oct. 11 assigned Estonia-based Luminor Bank AS a Baa2 local- currency long-term senior unsecured debt rating, with a stable outlook.

The ratings agency expects the bank to improve its asset risk and profitability gradually over the next 12 to 18 months and issue a good amount of senior bonds during the next few quarters.

The senior unsecured ratings integrate the baseline credit assessment of "ba1," on which Moody's added one notch of uplift following the issuance of senior debt protecting creditors in case of failure.