Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
03 Aug 2010
Bank financial strength rating (BFSR) affirmed with stable outlook
Frankfurt am Main, August 03, 2010 -- Moody's Investors Service has today downgraded to Baa3 from Baa2 the long-term
debt and deposit ratings of Hypo Alpe-Adria-Bank International
AG ("Hypo Alpe Adria") and its ratings for subordinated liabilities
to Ba1 from Baa3. Concurrently, the bank's short-term
rating was downgraded to P-3. Hypo Alpe Adria's E
Bank financial strength rating (BFSR), mapping to a stand-alone
Baseline Credit Assessment (BCA) of Caa2, was affirmed with a stable
outlook. The multi-notch uplift for the bank's deposit
and debt ratings reflects Moody's assessment of a very high probability
of ongoing systemic support. The outlook on the debt and deposit
ratings is negative.
At the same time, Moody's confirmed the Ca ratings for the
non-cumulative preferred securities (Tier 1 instruments) issued
by Hypo Alpe Adria (Jersey) Ltd and Hypo Alpe Adria (Jersey) II Ltd with
a stable outlook. The ratings of Hypo Alpe-Adria's supplementary
capital bonds (Ergänzungskapital) were affirmed at C with their stable
Today's rating actions conclude the review for possible further
downgrade of the short- and long-term debt ratings that
Moody's initiated on 4 December 2009.
The Aa3/A1/Prime-1 ratings for debt backed by the Austrian federal
state of Carinthia and the Aaa rating for debt backed by the Republic
of Austria are not affected by the rating action.
Baa3/P-3 RATINGS BENEFIT STRONGLY FROM EXPECTED MEDIUM-TERM
Moody's decision to downgrade Hypo Alpe Adria's long-term
debt ratings by only one notch follows the recent completion of another
EUR450 million capital injection by the Republic of Austria and EUR150
million by the State of Carinthia, as announced in December 2009.
In Moody's view, the ongoing dialogue with the European Commission
about the bank's restructuring plan has reduced the risk of a transformative
event such as the break-up of the group. The rating agency
recognises that more than half of Hypo Alpe-Adria's outstanding
debt is guaranteed by the State of Carinthia (ca. EUR19.4
billion) or by its sole owner, the Republic of Austria (EUR1.35
According to Moody's, Hypo Alpe Adria's ability to retain
its Baa3 long-term deposit rating for the foreseeable future depends
on the following factors:
i) Moody's expectation of a continued commitment by the Republic
of Austria to support the bank given its important role in the Austrian
federal state of Carinthia and the systemic relevance of its subsidiaries
in some neighbouring countries in south-eastern Europe.
ii) The approval of the bank's suggested restructuring plan by the
Moody's decision to apply a negative outlook to the senior unsecured
debt and deposit ratings reflects its view of a lower probability of future
systemic support over time because (i) Hypo Alpe Adria's systemic
importance will inevitably decrease as major parts of the bank are divested
or wound down over time, and (ii) the "grandfathering"
or sovereign guarantee for the bank's debt will reduce over time
in light of the largely staggered nature of the maturity profile of this
debt until 2017.
BFSR CONSTRAINED BY WEAK ASSET QUALITY, CAPITALISATION, AND
The E BFSR reflects Moody's view that, the recent capital
injections notwithstanding, Hypo Alpe Adria is likely to continue
to face substantial challenges in its efforts to rebuild some of its previous
financial strength. Moreover, the rating agency believes
that the bank has yet to prove that its franchise in Austria and abroad
can be restored. Accordingly, Moody's stated that the
BFSR currently continues to remain constrained by several factors,
i) the severe asset quality problems, with non-performing
loans (NPLs) accounting for more than 20% of total loans and a
relatively weak coverage ratio despite some offsetting impact from collateralisation;
ii) the poor outlook on Hypo Alpe-Adria's short- and
medium-term profitability and thus internal capital-generation
iii) the bank's limited capital buffer to absorb future credit losses
which may require further capital measures; and
iv) continued concerns about the long-term viability of Hypo Alpe
Adria's diversified commercial franchise, which suffers from
limited opportunities for new business against the background of its far-reaching
restructuring and downsizing programme.
Moody's expects that the bank will focus on de-risking its
current business profile, which may have positive rating implications
in the long run. However, targeted restructuring measures
remain dependent on the approval of the European Commission, which
are not expected to be granted before year-end 2010.
The possible impact on the ratings of Hypo Alpe Adria's covered
bonds will be discussed in a separate press release.
RATINGS OF HYBRID INSTRUMENTS NOW ALL WITH STABLE OUTLOOK
The confirmation of the Ca ratings and stable outlook of the non-cumulative
preferred securities (Tier 1 instruments) issued by HGAA's subsidiaries,
Hypo Alpe Adria (Jersey) Ltd and Hypo Alpe Adria (Jersey) II Ltd,
is based on Moody's view that the likelihood of a break-up
of the group has decreased following the recent completion of the capital
injection by the Republic of Austria and the State of Carinthia and the
ongoing dialogue with the European Commission about the bank's restructuring
plans. The ratings do factor in further coupon losses over the
next years. The Ca ratings take into account that the perpetual
instruments could have some prospect of recovery in the long term.
At the same time, the ratings of Hypo Alpe-Adria's supplementary
capital bonds (Ergänzungskapital, ISINs: AT0000345202,
XS0178449467) were affirmed at C with their stable outlook. The
C ratings reflect Moody's expectation of coupon losses over the next years
and the potential for principal losses at maturity in 2014 and 2015,
respectively. Moody's believes that the recovery potential of those
instruments is very limited.
PREVIOUS RATING ACTION AND METHODOLOGIES
Moody's previous rating action on Hypo Alpe-Adria was implemented
on 15 April 2010, when Moody's downgraded the ratings of Hypo Alpe-Adria
for senior debt backed by the Austrian federal state of Carinthia to Aa3
from Aa2 and the guaranteed subordinated debt to A1 from Aa3. At
the time, Moody's gave the bank's guaranteed ratings
a "developing" outlook and maintained the review for possible
further downgrade on the short- and long-term debt ratings
of Hypo Alpe-Adria.
The principal methodologies used in rating Hypo Alpe-Adria were
"Moody's Bank Financial Strength Ratings: Global Methodology",
published in February 2007, "Incorporation of Joint-Default
Analysis into Moody's Bank Ratings", published in March 2007,
and " Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated
Debt", published in November 2009, which are available on
www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab. Other methodologies and factors
that may have been considered in the process of rating this issuer can
also be found in the Rating Methodologies sub-directory on Moody's
Based in Klagenfurt, Austria, Hypo Alpe-Adria reported
consolidated assets of EUR41.1 billion at the end of 2009 and an
after-tax loss of EUR 1.6 billion.
Frankfurt am Main
Senior Vice President
Financial Institutions Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
MD - Banking
Financial Institutions Group
Moody's Deutschland GmbH
Moody's downgrades Hypo Alpe-Adria to Baa3/P-3, negative outlook
An der Welle 5
Frankfurt am Main 60322
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.