Moody's moves SpareBank 1 view to positive

Moody's Investors Service said it confirmed SpareBank 1 BV's long-term A2 issuer rating and changed the outlook to positive from ratings under review.

This action completes the review for upgrade started Jan. 29, the agency said.

“The change in outlook, reflects Moody's view that following the completion of the merger between SpareBank 1 BV and SpareBank 1 Telemark, 1) the new entity's MREL requirements could result into an issuance of large volumes of more subordinated liabilities which following the application of Moody's forward looking advanced LGF analysis could result into a rating upgrade of the deposit and issuer rating in the next 12-18 months and 2) the new entity will continue to demonstrate strong underlying financial performance which if sustained through the integration period could result in an upgrade to the banks BCA and ratings,” the agency said in a press release.

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