LONDON (Alliance News) - Moody's Investor Service said late Monday it upgraded Permanent TSB Group Holdings PLC's issuer rating, keeping its outlook positive.
Moody's increased the Irish financial services company's long-term deposit and senior unsecured debt ratings to Baa3 from Ba2.
Permanent TSB's baseline credit assessment was also upgraded, with the credit ratings agency upgrading the assessment to ba2 from b1.
Moody's upgraded the lender's baseline credit assessment due to its solvency "materially strengthening" on a sharp decrease in "problem loans".
As part of the upgrade, Permanent TSB's counterparty risk assessment was upgraded to Baa1(cr)/P-2(cr) from Baa3(cr)/P-3(cr). The lender's counterparty risk rating was upgraded to Baa1/P-2 from Baa3/P-3.
Permanent TSB's short-term deposit ratings were upgraded to Prime-3 from Not Prime.
Moody's maintained its positive outlook for the lender's long-term senior unsecured debt and deposit ratings. The investor service said the expectation of further improvements in Permanent TSB's asset quality and "largely stable" profitability drive the positive outlook.
The ongoing regulatory pressure to reduce non-performing loans and the "supportive" operating environment in Ireland also contributed to the positive outlook. Moody's currently has an A2, stable rating for Ireland.
Shares in Permanent TSB were down 1.4% Tuesday at EUR1.26 each.