Banque Internationale à Luxembourg SA (BIL) today received information from Moody's Investors Service that its Baseline Credit Assessment (BCA) will be raised from 'ba1' to 'baa3', reportedly based on the bank’s track record of successful results.
In addition, BIL’s long-term deposit and senior unsecured debt ratings were upgraded to 'A3' from 'Baa1', and its subordinated debt rating was upgraded to ‘Ba1’ from ‘Ba2’. The bank reports positive outlooks on the long-term deposit and the senior unsecured debt ratings.
"We are delighted with this upgrade and recognition from Moody’s," said Hugues Delcourt, CEO of BIL. “It is a validation of our strategy to continue being one of the most influential and effective banks in Luxembourg, while underscoring our ongoing commitment to our clients."
"Our recently-announced long-term BIL2020 strategy is designed to project the bank more dynamically internationally, while continuing to serve as a magnet for new investment business in the Grand Duchy,” he added.
According to Moody’s, who provide credit ratings, research and risk analysis to multiple financial corporations, the upgrade is due to the bank’s strong and stable core retail and commercial franchise in Luxembourg, and its sound financial indicators.
The change in the ratings results from Moody’s review of its ratings of three Luxembourg-based banks, announced in March 2015, and involves its new bank rating methodology.
Moody’s also stated that if BIL continues to establish a strong track record of earnings stability, while demonstrating a clear strategic direction, this would “likely result in an upgrade to the ratings.” BIL have stated that its BIL2020 strategy is intended to make this happen.
