Moody's Investors Service upgraded to A2 from Baa1 the senior unsecured debt ratings of AS Hansapank. The deposit ratings of Baa1/Prime 2 (which are set at the country ceiling for Estonia) and the financial strength rating of C- are confirmed with a stable outlook.
The senior unsecured debt rating of Hansapank was placed on review as a result the result of a change in the rating agency's long-standing approach to rating the foreign currency bonds of debt issuers that now permits ratings of bonds and notes of some issuers to exceed their country ceilings.
The upgrade reflects Moody's belief in the ability of Hansapank to exceed the ceiling of its country of domicile.
In this context, Moody's cited three factors:
(1)the creditworthiness of the Hansapank, which is enhanced by the large equity stake that Swedbank currently holds in it (58%);
