Moody's justifies the rating upgrade primarily with NORD/LB's improved profitability, the level of risk provisions above model requirements (management adjustments) and the bank's solid capital position, which serve as a buffer in the currently challenging operating environment in Germany.
The complete rating information from Moody's can be found here
The rating agency Fitch had also announced the upgrade of NORD/LB's standalone ("Viability") rating from bb+ to bbb- at the beginning of February. The long-term rating of A+, which is also linked to the long-term rating of the Sparkassen-Finanzgruppe, was also confirmed here.
According to Fitch, the upgrade primarily reflected NORD/LB's stabilising business profile and improved profitability.
The press release of the rating agency Fitch can be found here
About NORD/LB
NORD/LB Norddeutsche Landesbank is one of Germany's leading commercial banks. As an institute under public law, it is part of the S-Finance Group. Its core business segments include corporate customers, special financing in the energy and infrastructure sectors, financing commercial real estate via Deutsche Hypo, capital market business, association business with the savings banks and private and commercial customers including private banking. The bank is based in Hanover, Braunschweig and Magdeburg and has branches in Oldenburg, Hamburg, Schwerin, Düsseldorf and Munich. Outside Germany NORD/LB is represented by a Pfandbrief bank (NORD/LB Covered Bond Bank) in Luxembourg and by branches in London, New York and Singapore.
