Moody's on Oct. 2 assigned first-time Baa2/Prime-2 long- and short-term foreign- and local-currency bank deposit and issuer ratings to Oldenburgische Landesbank AG.
The agency also assigned the German lender long- and short-term counterparty risk ratings and counterparty risk assessments of Baa1/Prime-2 and A3(cr)/Prime-2(cr), respectively, as well as baseline and adjusted baseline credit assessments of "baa3".
Moody's noted the bank's stable financial fundamentals, which are supported by its robust capitalization and strong access to retail deposit funding, and said that it expects Oldenburgische Landesbank to continue its tight management of liquidity safety buffers and broadening diversification of funding sources.
Moody's also expects the bank to pursue a restructuring of its retail operations while at the same time increasing the revenue contribution of its specialized lending activities, which in turn will increase the bank's exposure to cyclical risks as well as asset concentration risks.
The outlook on the long-term bank deposit and issuer ratings is stable, reflecting Moody's expectation that Oldenburgische Landesbank will demonstrate a stable development of its key financial ratios and credit profile over the next 12 to 18 months.
