The outlook for EFG Bank's long-term issuer rating at Moody’s has now been upgraded to «stable» from «negative.» However, the rating remains at «A3,» according to a research note released Thursday evening.

The rating assessment reflects EFG's progress in areas such as capitalization and profitability. The stable outlook for EFG Bank’s long-term deposit and senior unsecured debt ratings, as well as for the issuer ratings of EFGI, reflects the expectation that the combined solvency and liquidity profile of the bank and the group will remain stable over the next 12–18 months, the report states. Moreover, no changes are expected in the bank's liability structure that could affect the applied rating uplift.

Long-Term Deposit Rating Raised

The long-term deposit rating has been upgraded to «Aa3» from «A1,» and the rating for senior unsecured liabilities to «A2» from «A3.»

The confirmation of EFG Bank’s Baseline Credit Assessment (BCA) reflects the bank's progress in narrowing the capitalization gap compared to other Swiss private banking institutions, as well as its improved profitability, according to the experts. Together, these factors provide a solid buffer against asset risks.

Other positive factors cited include the bank’s relatively low leverage ratio, the low level of problematic loans covered by provisions for loan losses, and the strong liquidity buffer. These factors help mitigate funding and outflow risks.