Moody’s ups KBC deposits, assigns Aa3 CRR

Moody's Investors Service said it assigned long-term and short-term counterparty risk ratings of Aa3 and Prime-1, respectively, to KBC Bank NV.

The agency also upgraded KBC Bank's long-term deposit rating to Aa3 and has affirmed all other ratings of the group.

Moody’s said that in assigning counterparty risk ratings to KBC Bank, the agency starts with the bank's baa1 adjusted baseline credit assessment and uses the agency's advanced loss given failure framework, which takes into account the level of subordination to counterparty risk rating liabilities in the bank's balance sheet and assumes a nominal volume of those liabilities.

In addition, the agency said it incorporated a moderate likelihood of government support for counterparty risk liabilities.

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