Moody’s upgrades IPEX-Bank

Moody's Investors Service said it upgraded the long-term deposit ratings of KfW IPEX-Bank GmbH to Aa2 from A2 and changed the outlook to stable from ratings under review.

The agency upgraded IPEX-Bank's long-term counterparty risk ratings to Aa2 from A2 and the long-term counterparty risk assessment to Aa2(cr) from A2(cr).

Moody's upgraded the bank's baseline credit assessment and adjusted baseline credit assessment to a3 from baa3.

The agency affirmed the short-term deposit and counterparty risk ratings at P-1 and the short-term counterparty risk assessment at P-1(cr).

The action concludes Moody's review for upgrade initiated on June 15, which was prompted by a reassessment of the degree of financial integration and dependency of IPEX-Bank with Kreditanstalt fuer Wiederaufbau (KfW).

The agency said that by upgrading IPEX-Bank's ratings, it considers the specific characteristics of financial integration of IPEX-Bank into KfW, which includes IPEX-Bank's contractual access to funding via its parent, as well as the bank's strengthened financial metrics, particularly following various capital measures undertaken by its parent KfW in 2017.

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