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Moody's downgrades UniCredit Bank AG's senior unsecured debt to Baa2, outlook stable

Yesterday Moody's Investors Service said it has downgraded the long-term senior unsecured debt and issuer ratings of UniCredit Bank AG (UCB) to Baa2 from Baa1, and affirmed the A2 deposit and senior senior unsecured debt ratings as well as the P-1 short-term ratings. Moody's also affirmed the bank's baa2 Baseline Credit Assessment (BCA), the baa2 adjusted BCA and the A1(cr)/P-1(cr) Counterparty Risk Assessments (CR Assessment).

Concurrently, Moody's upgraded the long- and short-term deposit ratings of UniCredit Luxembourg S.A. (UCL) to A2/P-1 from A3/P-2 and its long-term CR Assessment to A1(cr) from A2(cr).

UCL's Baa2 issuer rating and the P-1(cr) short-term CRA were affirmed along with the bank's baa2 BCA and the baa2 adjusted BCA.

UCB's and its subsidiaries' subordinated debt and hybrid debt ratings were also affirmed in yesterday's ratings action, including instruments issued by HVB Funding Trust, HVB Funding Trust II and HVB Funding Trust III.

The outlooks on the two banks' long-term deposit and issuer ratings, and the outlooks on UCB's long-term senior unsecured debt and the senior senior unsecured debt ratings remain stable.