Moody's rates Luminor Bank Baa2

Moody's Investors Service said it assigned a local-currency long-term senior unsecured debt rating to Luminor Bank AS (Estonia) of Baa2.

The outlook is stable.

All other ratings are unaffected.

The assignment of a senior unsecured rating follows the issuance of senior debt within the scope of provisionally rated senior unsecured medium-term notes program, which has a long-term rating of provisional Baa2.

The ratings reflect an expectation that over the next 12- to 18-months, the bank will gradually improve its asset risk and profitability while shifting to a more autonomous funding profile in the context of a benign operating environment, Moody's said.

The agency also expects the bank will issue considerable amounts of senior debt over the next few quarters, building a sizable loss absorbing cushion worth one notch of uplift.

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