Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ 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 inform​ation 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

1.            Unless 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.               

2.            You 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 Information.

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.​​​

I AGREE
Rating Action:

Moody's downgrades Oesterreichische Volksbanken AG to Ba3 from Ba1; outlook negative

05 Aug 2014

Rating action concludes review

Frankfurt am Main, August 05, 2014 -- Moody's Investors Service, ("Moody's") has today downgraded the issuer, senior unsecured debt and deposit ratings of Oesterreichische Volksbanken AG (VBAG) to Ba3 from Ba1. The ratings now include four notches of support down from previously six notches and reflect the implications of Moody's reassessment of the support environment in Austria for VBAG.

The rating agency also affirmed the standalone bank financial strength rating (BFSR) at E, equivalent to a caa1 baseline credit assessment (BCA), accounting for the bank's improved capitalisation and the progress VBAG has made in deleveraging its substantial legacy portfolios. This rating action closes the review opened on 27 March 2014.

The outlook on the bank's long-term ratings is negative driven by pressure on the bank's intrinsic creditworthiness and on support. The pressure on support results from the recent adoption of the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRM) regulation in the EU.

Moody's also downgraded to Ba3 from Ba1 the senior unsecured ratings of VBAG's former subsidiary Investkredit Bank AG (which VBAG assumed in September 2012). The Caa2 ratings of the subordinate and senior subordinate debt of VBAG and its former subsidiary Investkredit Bank AG (Investkredit) were confirmed with a negative outlook. Hybrid capital instruments of VBAG, Investkredit or other issuing entities of the group continue to be rated on an expected loss basis and were affirmed at their current levels by today's rating action.

RATINGS RATIONALE

--- DOWNGRADE REFLECTS CHANGE IN SUPPORT ASSUMPTIONS

Moody's lowered the support uplift to four notches from six previously to reflect the implications of Moody's reassessment of the support environment in Austria for VBAG. Moody's support assumptions for VBAG are now aligned with other systemically relevant banks in Austria that benefit from high support uplift.

The four notches of support also reflect the additional capital cushion provided by EUR557 million subordinated debt at the level of VBAG as of 31 March 2014 (EUR891 million at the level of the sector as of 31 December 2013). This cushion may become available as part of a bail-in solution in case of need.

--- AFFIRMATION REFLECTS SUBSTANTIAL DELEVERAGING PROGRESS

VBAG has made substantial progress in further deleveraging its legacy, non-core portfolio which still accounted for EUR7.1 billion assets according to their FY 2013 accounts. On 28 July 2014, VBAG announced that it sold EUR495 million or almost half of its portfolio of non-performing loans in Romania. During the review period, VBAG also announced the sale of its private equity portfolio, VB-Leasing International's subsidiaries in Poland and Romania and Volksbank Malta.

At the same time, the fundamental rating at E / caa1 also reflects VBAG's weak operating performance as reflected in its recent EUR57 million loss in Q1 2014 following a EUR73 million loss in 2013. Visibility of VBAG's earnings remains low as VBAG continues to deleverage and unwind its legacy portfolios. VBAG's state aid approval requires the bank to sell VB-Leasing International by year-end 2014 and VB Romania by year-end 2015.

--- POTENTIAL ADDITIONAL CAPITAL NEEDS TO ENSURE ONGOING COMPLIANCE WITH CAPITAL REQUIREMENTS AT VOLKSBANKEN SECTOR LEVEL

A potential remapping of VBAG's E BFSR could result from additional capital needs that may necessitate a capital injection at the level of the sector. On 6 May 2014, the Austrian regulator informed VBAG that the Association of Volksbanken (unrated) needs to maintain an equity ratio of 13.6% under Basel 3, compared to a 14.6% capitalisation as of 1 January 2014. Capital needs may also be triggered by the European Central Bank's Comprehensive Assessment which the sector is subject to, in particular the ECB's requirement to maintain a 5.5% CET1 ratio in its stress case scenario.

Key drivers for potential capital needs are that (1) major parts of VBAG's current capital base will be derecognized once Basel III has been fully phased in, including EUR300 million participation capital injected by the government during the financial crisis, and (2) VBAG's continued weak operating performance and profitability as reflected in recent losses.

Moody's believes that there is a reasonable likelihood that additional capital will be needed at the level of the sector. In Moody's central scenario, the sector continues to be able to address capital needs on its own, which may include additional capital raising at the level of the sector. In addition, Moody's expects that VBAG's deleveraging will also be a crucial element for the sector to comply with the minimum capitalisation needs from the Austrian regulator.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the downward pressure on the BCA on the back of continued pressure on the bank's capitalisation. This may occur in a stressed environment, but is also driven by the de-recognition of major parts of its current capital base once Basel III has been fully phased-in.

The negative outlook also reflects the recent adoption of the BRRD and the Single Resolution Mechanism (SRM) regulation in the EU, which will have further negative consequences for banks' creditors as indicated by Moody's rating action on European banks of 29 May 2014.

WHAT COULD MOVE THE RATING -- UP / DOWN

Downward pressure on VBAG's standalone BCA would emerge if Moody's believes that the sector does not have the capacity to support VBAG, or if the sector faces pressure on its own capitalisation. Capital shortfalls at the level of VBAG might trigger the need for sector support. Further pressure would arise if VBAG's funding profile and liquidity comes under pressure; any delay in the bank's ability to offload its substantial run-down portfolio would likely trigger this extra pressure.

VBAG's debt and deposit ratings could suffer from downward pressure as a result of (1) pressure on its BCA; and/or (2) if Moody's further revises its assumptions regarding the likelihood of the Austrian government being willing to provide systemic support to VBAG in the event of need.

Upward pressure on VBAG's BFSR would result from a successful recapitalisation and/or a successful deleveraging and de-risking of its balance sheet that would allow and support VBAG to execute its restructuring plan and preserve an adequate liquidity position.

Upward pressure on the bank's debt and deposit rating would require substantial improvements in the bank's standalone creditworthiness that would prompt an upward adjustment of the BCA. Moody's believes that these improvements are currently unlikely given the high level of support still incorporated into the bank's ratings.

LIST OF AFFECTED RATINGS

The following ratings of VBAG were downgraded:

- Long-term senior debt and deposit ratings and issuer rating to Ba3 negative, from Ba1 review for downgrade;

The following ratings of VBAG were confirmed:

- Subordinate and senior subordinate debt ratings at Caa2 negative.

The following ratings of VBAG were affirmed:

- E BFSR, equivalent to a BCA of caa1.

- Short-term debt and deposit rating at Not Prime.

- Pref. Stock Non-cumulative at Ca (hyb) stable.

- Junior Subordinate at Ca (hyb) stable.

The following ratings of Investkredit were downgraded:

- BACKED Long-term senior unsecured debt ratings to Ba3 negative, from Ba1, review for downgrade.

The following ratings of Investkredit were confirmed:

- BACKED Subordinate debt ratings at Caa2 negative.

The following ratings of Investkredit Bank AG were affirmed:

- BACKED Junior Subordinate debt at Ca (hyb) stable.

The following ratings of OEVAG Finance (Jersey) Limited were affirmed:

- BACKED Pref. Stock Non-cumulative at Ca (hyb), stable.

The following ratings of Investkredit Funding Ltd were affirmed:

- Pref. Stock Non-cumulative at Ca (hyb), stable.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Banks published in July 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

These rated entities or related third parties did not participate in the rating process. Moody's was not provided, for purposes of the rating, access to books, records and other relevant internal documents of the rated entity or related third party.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Mathias Kuelpmann
Senior Vice President
Financial Institutions Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades Oesterreichische Volksbanken AG to Ba3 from Ba1; outlook negative
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.

​​​​
Moodys.com