Moody's upgrades Hypo Tirol

Moody's Investors Service said it upgraded Hypo Tirol Bank AG's senior unsecured debt and deposit ratings by one notch to Baa1 from Baa2.

The agency also upgraded the ratings of Hypo Tirol's backed senior unsecured debt instruments that benefit from a deficiency guarantee of the State of Tyrol to A2 from A3.

The outlook also was revised to stable from positive.

The agency also said it upgraded Hypo Tirol's long-term counterparty risk rating to A3 from Baa1.

Moody's also said it upgraded the bank's baseline credit assessment and adjusted baseline credit assessment to Baa3 from Ba1.

The upgrades consider Hypo Tirol's improved financial fundamentals, in particular its asset risk and profitability metrics, the agency said.

This improvement is balanced by the bank's moderating liquid resources, reflecting rising investments into lending activities to compensate for persistent profitability challenges, Moody's said.

The stable outlook reflects an expectation that Hypo Tirol will be able to maintain its improved financial profile, the agency added.

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