Moody's upgrades Luminor Bank

Moody's Investors Service said it upgraded Luminor Bank AS' long-term senior ratings to Baa1 from Baa2. The outlook was changed to stable from positive.

“The primary driver for the upgrade is the strengthened solvency of the bank, with improved asset risk, a solid capital base, and a return to lending growth that will support sustainable growth in revenues,” Moody’s said in a press release.

The stable outlook reflects the expectation that that tangible common equity to risk weighted assets will likely decline during the outlook period, from 23.6% at end of June 2021, as balance sheet growth continues and that Luminor will start paying dividends,, while problem loans remain low and profitability moderate, the agency said.

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