Moody's upgrades ratings for Danske Bank
Xinhua, June 17, 2015 Adjust font size:
Credit ratings agency Moody's has raised the long- and short-term ratings for Denmark's Danske Bank, the bank announced Wednesday.
The long-term rating was upgraded from A3 to A2, and the short-term rating was raised from P-2 to P-1, Danske Bank said in a statement.
Meanwhile, Danske Bank's baseline credit assessment (BCA) was affirmed by the ratings agency at Baa1.
The upgrades followed on the announcement earlier this year from Moody's that Danske Bank's ratings had been placed under review for potential upgrade.
It also reflects the recent progressive strengthening of the bank's performance and the ratings agency's expectation that the performance will continue to improve, according to Moody's.
"The positive recent trend in Danske Bank's problem loan-levels is expected to continue in the coming 12 to 18 months, triggering further reductions in loan loss provisions and improvements in profitability," Moody's said.
It added that Danske Bank's capital ratios have also improved, increasing its ability to absorb potential future losses.
Danske Bank is Denmark's largest financial institution, and is the market leader in most financial products. Endit