Moody's lifts KBC view to positive

Moody's Investors Service said it affirmed the Aa3 long-term deposit-rating of KBC Bank NV and the Baa1 long-term senior unsecured debt and issuer ratings of KBC Group NV.

The agency also affirmed the A1 backed senior unsecured debt rating of KBC IFIMA SA, as well as KBC Bank's backed junior subordinated debt rating and KBC Group's non-cumulative preferred stock rating of Baa3(hyb) and Ba1(hyb), respectively.

KBC Bank's short-term deposit ratings also were affirmed at prime-1 and KBC Group's deposit note rating was affirmed at prime-2,.

The outlooks on the companies were changed to positive from stable, Moody's said.

Moody's also said it upgraded the baseline credit assessment of KBC Bank Ireland plc to B2 from B3 and affirmed its adjusted baseline assessment of Ba1, long-term deposit rating of Ba1 and short-term deposit rating of not-prime.

The upgrades reflect the bank's improved asset risk profile following a decrease in its stock of problem loans, the agency said.

Moody's said it expects the group's asset quality to continue to improve in the near term thanks to the benign operating environment and rising real estate prices in Ireland.

But the agency also said it expects the stock of problem loans to remain high in absence of further disposal transactions.

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