Threat of Bankruptcy: Moody´s Cuts Hypo Group Alpe Adria´s Rating

Professional ServicesBanks ♦ Published: February 15, 2014; 18:35 ♦ Updated: February 15; 18:47 ♦ (Vindobona)

The U.S. rating agency downgrades the rating of the Austrian nationalized lender by four notches. Moody´s referred to the uncertainty and the vague statements of the Austrian government.

Threat of Bankruptcy: Moody´s Cuts Hypo Group Alpe Adria´s Rating / Picture: © Vindobona.org

According to Moody´s, the danger of Hypo Group´s bankruptcy cannot be excluded anymore. Moody´s stressed that Hypo Group´s creditors and bondholders are endangered of a haircut.  Moody´s cut the rating for senior loans from A1 to Baa2. The rating for subordinated loans was lowered to Baa3 from A2. According to Moody´s, the underlying reason behind the downgrade is the growing…