EQS-News

Moody's upgrades OLB's ratings, reflecting strengthened financial profile and outlook

EQS-News: Oldenburgische Landesbank AG / Key word(s): Rating Moody's upgrades OLB's ratings, reflecting strengthened financial profile and outlook 07.02.2024 / 15:10 CET/CEST The issuer is solely responsible for the content of this announcement. PRESS-RELEASE

Oldenburg, 7 February 2024

Moody's upgrades OLB's ratings, reflecting strengthened financial profile and outlook

• Senior unsecured and long-term issuer ratings improved to Baa1 from Baa2 with stable outlook
• Rating development confirms OLB's strong and resilient business model, robust financial metrics as well as prudent risk management

OLB has recently achieved an upgrade of its long-term deposit, senior unsecured, and long-term issuer ratings by the rating agency Moody's to Baa1 from Baa2. The outlook on these ratings has been changed to ‘stable’ from ‘positive’, reflecting the confidence in OLB's strengthened financial position and prospects in a challenging economic environment.

Moreover, OLB's Baseline Credit Assessment (BCA) was upgraded to baa2 from baa3. This change further underscores the bank's improved solvency and liquidity profiles, which Moody's expects to remain robust despite external pressures. Throughout the first nine months of 2023, the period covered by Moody’s, OLB demonstrated resilience in asset quality metrics, supported by improved profitability and solid risk-weighted capitalization.

In addition, Moody's acknowledges OLB's strategic acquisition of Degussa Bank, which is expected to be completed in the first half of 2024. The acquisition will likely strengthen OLB's retail-focused deposit funding base and generate cost synergies, thereby enhancing the bank's loss-absorption capacity and limiting reliance on market funding.

"We are pleased with Moody's decision to upgrade our ratings, which reflects our continued commitment to maintaining a strong and resilient financial position," says Dr Rainer Polster, CFO of OLB. "The upgrade confirms the success of our strategic initiatives and positions us well for sustained growth and stability in the future."