Moody's Places 365.bank Ratings on Review for Upgrade After KBC Acquisition Announcement

Strategic Insights -

Moody's has placed 365.bank's ratings on review for upgrade following the announcement by J&T Finance Group SE and KBC Bank N.V. that KBC will acquire a 98.45% stake in 365.bank. This move is expected to strengthen 365.bank's financial profile and potentially lead to a higher Adjusted Baseline Credit Assessment (Adjusted BCA) and rating upgrades.

The review for upgrade follows the announcement of the joint press release by J&T Finance Group SE and KBC Bank N.V. on May 15, 2025, stating that KBC will acquire a 98.45% stake in 365.bank from JTFG. The completion of the acquisition is subject to relevant regulatory and antitrust approvals, expected to be finalized by year-end 2025.

Key Takeaways:

  • The review for upgrade follows the announcement of KBC's acquisition of a 98.45% stake in 365.bank from JTFG.
  • The incorporation of affiliate support from KBC is likely to result in a higher Adjusted BCA for 365.bank, potentially leading to multiple rating upgrades.
  • The review will closely monitor the outcome of regulatory approvals, future organizational structure, and the final resolution strategy for 365.bank.
  • The ratings could remain on review for upgrade for an extended period in 2025 or even into 2026 if the acquisition is delayed.
  • The positive outlook on 365.bank's long-term deposit, issuer, and senior unsecured debt ratings reflects upward rating pressure.
  • The incorporation of affiliate support from KBC and potentially higher rating uplift from Moody's Advanced Loss Given Failure (LGF) analysis could exert significant upward rating pressure.

Statistics:

  • 365.bank's long-term deposit ratings: Baa3
  • 365.bank's long-term issuer and senior unsecured debt ratings: Ba1
  • 365.bank's short-term deposit and issuer ratings: P-3 and NP, respectively
  • Adjusted BCA: ba1
  • Counterparty Risk Ratings: Baa1/P-2

Sources:

  • [1] Moody's Investors Service, "Joint Press Release by J&T Finance Group SE and KBC Bank N.V." (May 15, 2025)