Moody’s upgraded Yorkshire Building Society’s mortgage-backed covered bond programme from Aa2 to Aa1 today (Thursday) following an upgrade of the financial institution’s long term senior unsecured rating.

The rating agency upgraded the senior debt rating of Yorkshire last Thursday (13 March), from Baa2 to Baa1, as a result of improving asset quality, increased profitability, and ongoing reduction in legacy assets.

The anchor point for Yorkshire’s covered bond rating remains unchanged at the senior unsecured rating under amendments to Moody’s methodology that reflect bail-in, because Yorkshire’s debt ratio is below 5%, noted the rating agency.