RBS welcomes debt upgrade from Moody's

Credit agency Moody's upgraded its rating on Royal Bank of Scotland's senior debt on Tuesday, also changing its outlook to 'positive'.

Moody's Investors Service hiked its rating on RBS senior unsecured debt to Baa2 from Baa3 long-term and to P-2 from P-3 short-term.

The ratings agency also reaffirmed all ratings of Royal Bank of Scotland Plc, plus subsidiaries NatWest Bank, NatWest Markets, NatWest Markets, Ulster Bank Ltd and Ulster Bank Ireland DAC, and changed the outlook on senior unsecured debt and deposit ratings to 'positive' from 'stable'.

'The upgrade and the positive outlook reflect Moody's view the group has a stronger standalone credit profile, as well as Moody's expectation that the group's profitability will increase in the medium-term,' the bank said in a statement.