Moody’s Investor Service (Moody’s) announced the upgrade of Luminor Bank’s bank deposit ratings to A3 from Baa1, and long-term senior rating to Baa1 from Baa2. Following this, Moody’s changed its rating outlook to neutral.
Explaining its decision, Moody’s noted the strengthened solvency of the bank, with improved asset risk, a solid capital base, and a return to lending growth that will support sustainable growth in revenues, as the primary driver for the upgrade.
Luminor Bank CEO, Peter Bosek, said:
‘We are pleased that Moody’s recognizes the progress Luminor has made. Moody’s comments are reflective of our strategy and priorities for the period ahead – focusing on our clients, growing our business, and improving our efficiency, while maintaining our financial strength and prudent risk management.’
Moody’s upgraded Luminor Bank AS’s long-term deposit ratings to A3 from Baa1 and the long-term senior ratings to Baa1 from Baa2. The Baseline Credit Assessment (BCA) was upgraded to baa3 from ba1. Furthermore, the Counterparty Risk Ratings (CRR) and the Counterparty Risk Assessments (CRA) were upgraded to A2/P-1 from A3/P-2, and A2(cr)/P-1(cr) from A3(cr)/P-2(cr), respectively. The short-term deposit ratings were affirmed at P-2.
The outlook on the long-term senior and deposit ratings was consequently changed to stable from positive.
Luminor is the leading independent bank in the Baltics and the third-largest provider of financial services in our region, with some 870,000 clients and 2,300 employees. We serve the financial needs of individuals, families, and companies. Just like our home markets of Estonia, Latvia, and Lithuania we are young, dynamic, and forward looking. Further information about us can be found at www.luminor.ee.