Moody’s raises ABN Amro

Moody's Investors Service said it upgraded ABN Amro Bank NV’s long-term deposit and unsecured debt ratings to A1 from A2.

The outlooks are stable.

Short-term deposit and senior unsecured ratings were affirmed at Prime-1.

On the same day, the bank's subordinated debt and 'high trigger' Additional Tier 1 (AT1) securities were upgraded to Baa2 and Ba1(hyb) respectively from Baa3 and Ba2(hyb) respectively.

Moody's also upgraded ABN Amro’s long-term counterparty risk assessment to Aa3(cr) from A1(cr). The short-term CR Assessment was affirmed at Prime-1(cr).

These upgrades result from the agency's upgrade of ABN Amro’s baseline credit assessment (BCA) to baa1 from baa2.

Moody’s said the upgrade of the baseline credit assessment reflects an improvement across most of the bank's fundamentals, in particular asset quality, profitability, solvency and liquidity, which is testimony to the progress achieved on all fronts by the bank since its rescue by the Dutch state in 2008.

These positive developments eventually led the Dutch government to begin the return of the bank to the private sector via an initial public offering in 2015.

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