Moody’s upgraded the mortgage covered bonds of Hypo Tirol today (Friday) following an upgrade of the Austrian issuer, while also confirming its ratings of three other Austrian covered bond programmes.

Moody’s in May placed the four programmes on review for upgrade, citing the potential positive impact of a deal being reached between Heta Asset Resolution – the bad bank of Hypo Alpe-Adria Bank AG – and its creditors.

The rating agency this afternoon upgraded the mortgage covered bonds of Hypo Tirol Bank from Aa3 to Aa2. This follows an upgrade of the issuer’s Counterparty Risk (CR) assessment from Baa3 to Baa2 on Wednesday, which came on the back of a successful tender offer for Heta senior and subordinated debt.

At the same time, Moody’s confirmed its Aa1 ratings of the public sector covered bonds of Hypo Tirol Bank and the mortgage and public sector covered bonds of Hypo NOE Gruppe Bank.