DBRS on June 3 upgraded Millennium BCP's long- and short-term issuer ratings to BBB(low)/R-2 (middle) from BB(high)/R-3, with stable trends on the ratings, reflecting the Portuguese bank's sound funding position and acceptable capital ratios.

The agency also upgraded the bank's long- and short-term deposit ratings to BBB/R-2 (high) and short-term debt rating to R-2(middle).

Moreover, the bank's intrinsic assessment was raised to BBB(low), while its support assessment remains unchanged at SA3.

The upgrades reflect the bank's improving profitability and asset quality, as a result of a reduction in stock of nonperforming exposures, helped by a favorable operating environment in Portugal. They also take into account the bank's good efficiency levels with a cost-to-income ratio of 47% in 2018 and solid contribution from its international operations.

Additionally, the agency upgraded Millennium BCP Macao branch's long- and short-term deposit ratings to BBB/R-2 (high), long-term senior debt rating to BBB(low) and short-term debt rating to R-2(middle). The trends on all the ratings are stable.