Moody’s has taken rating actions across several European banks following the adoption of new EU crisis management rules that strengthen the protection of bank depositors. The reform, part of the EU’s Crisis Management and Deposit Insurance (CMDI) package adopted in March 2026, establishes a harmonised creditor hierarchy across the European Union. Under this framework, deposits are now legally given priority over senior unsecured debt in the event a bank were to fail, meaning other creditors would absorb losses before depositors do.
Against this backdrop, Moody’s has upgraded BIL’s long term deposit rating to A1 from A2, reflecting the agency’s view that BIL’s depositors benefit from stronger structural protection. Moody’s notes that deposits at BIL now sit higher in the repayment hierarchy and are shielded by a larger layer of subordinated liabilities, which would bear losses first in a stress scenario. The outlook on BIL’s long term deposit rating remains stable, supported by the bank’s resilient solvency and liquidity profile and by expectations that its funding structure will remain broadly unchanged in the coming quarters.
At the same time, Moody’s has reaffirmed the A2 rating on BIL’s senior unsecured debt, with a stable outlook.
In practical terms, this rating action signals enhanced protection for depositors under the new EU rules and reinforces confidence in the safety of customer deposits should a resolution scenario ever arise.
Positive differentiation in a sector under pressure
BIL’s deposit rating upgrade stands out in the broader context of CMDI related rating actions across Europe. While the regulatory changes have led Moody’s to take a wide range of actions on banks’ senior preferred and long term issuer ratings across the sector, BIL’s upgrade highlights a positive differentiation, reflecting the strength of its funding structure and the enhanced protection afforded to depositors under the new EU framework.
