Moody's Upgrades Liechtensteinische Landesbank AG Deposit Rating to Aa1

Rating Upgrade Reflects Financial Strength

Global credit rating agency Moody's Ratings has announced an upgrade to the long-term deposit rating of Liechtensteinische Landesbank AG (LLB), moving the institution from Aa2 to Aa1. This action underscores the bank's robust financial position and its status as a cornerstone of the financial landscape in Liechtenstein.

Key Drivers of the Upgrade

The decision by Moody's is primarily driven by the bank's consistent financial performance and risk management profile. According to the agency, the upgrade reflects several critical factors:

• Exceptional financial stability characterized by strong capital ratios.
• A conservative risk appetite that has historically shielded the bank from significant market volatility.
• The systemic importance of LLB to the domestic economy of Liechtenstein.

The agency also highlighted the significance of the state guarantee provided by the Principality of Liechtenstein, which owns a majority stake in the bank, as a key pillar supporting its high creditworthiness.

Context of the Institution

Liechtensteinische Landesbank AG, founded in 1861, serves as the oldest financial institution in the country. As a universal bank, it provides a comprehensive range of services, including private banking, retail banking, and corporate banking. The Aa1 rating places LLB among the highest-rated banking institutions in the region, reflecting investor confidence in its long-term strategic direction and operational resilience.

Conclusion

The upgrade to Aa1 serves as a formal recognition of LLB's prudent management and its ability to maintain stability in a complex global economic environment. For stakeholders, this development reinforces the bank's reputation for security and reliability within the international financial markets.