Research Update: Kommunalkredit Austria AG Upgraded To ?BBB/A-2? On Strong Earnings And Better Performance Than Peers'; Outlook Stable

Austria-based bank Kommunalkredit reported a record high net profit in 2023, thanks to its ability to boost interest income while keeping loan losses low. Most financial metrics that we track as part of our rating analysis indicate that Kommunalkredit is outperforming its peer group of banks. We therefore raised our ratings on Kommunalkredit to 'BBB/A-2' from 'BBB-/A-3', and our issue rating on the bank's senior preferred debt by one notch to 'BBB'. The stable outlook reflects our expectation that, over the next 12-24 months, the bank will continue to demonstrate sound earnings and asset quality, supported by a steady business and risk strategy under its new majority shareholder, Altor Funds. On March 13, 2024, S&P Global Ratings raised its long-

...- Austria-based bank Kommunalkredit reported a record high net profit in 2023, thanks to its ability to boost interest income while keeping loan losses low. - Most financial metrics that we track as part of our rating analysis indicate that Kommunalkredit is outperforming its peer group of banks. - We therefore raised our ratings on Kommunalkredit to '###/A-2' from '###-/A-3', and our issue rating on the bank's senior preferred debt by one notch to '###'. - The stable outlook reflects our expectation that, over the next 12-24 months, the bank will continue to demonstrate sound earnings and asset quality, supported by a steady business and risk strategy under its new majority shareholder, Altor Funds....

Research Update