Moody’s could drop Hoist Kredit

Moody's Investors Service said it placed Hoist Kredit AB (publ)’s Ba1/Not Prime long- and short-term issuer and Ba1 senior unsecured ratings, senior unsecured and subordinated euro medium-term note program ratings of provisional Ba1 and provisional B1, as well as the short-term program rating of provisional NP on review for upgrade.

Concurrently, the agency affirmed Hoist's long- and short-term counterparty risk assessment of Baa3(cr)/P-3(cr) and its ba3 baseline credit assessment (BCA) and adjusted BCA.

Moody’s said the action follows Hoist’s April 27 announcement indicating that the debt purchaser plans to issue new subordinated debt in the coming weeks. The review for upgrade reflects the rating agency's assessment of a high likelihood that the planned debt issuance will be sufficiently substantial to materially increase the loss absorption cushion available to creditors in the unlikely event of a failure, the agency explained.

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