Moody’s raises KBC to A1

Moody's Investors Service said it upgraded KBC Bank NV's long-term deposit ratings and KBC IFIMA NV's backed senior unsecured debt ratings to A1 from A2.

The outlooks are stable.

These actions follow the upgrade of KBC Bank's baseline credit assessment to baa1 from baa2.

These upgrades were prompted by the strong and durable improvements in asset quality experienced by the bank in recent quarters, and in particular the reduction in tail risk from its Irish subsidiary.

These improvements enabled the bank to report solid and stabilized net earnings in the first nine months of 2015 and rapidly increasing regulatory capital ratios, which in turn allowed KBC Group to fully repay state aid at the end of the year.

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