Kommunalkredit restructuring finalised

By Bill Thornhill
30 Sep 2015

The beleaguered Austrian lender has announced the completion of its partial sale and split into KA New and KA Finanz. The asset pools of both are high quality but the covered bond ratings of KA New look more vulnerable than those of KA Finanz, analysts said.

Kommunalkredit Austria (KA) announced the privatisation of KA New, with assets of €4.5bn, on Tuesday. The assets were sold by the Financial Markets Holding Company of the Republic of Austria (FIMBAG) to a consortium of buyers of Gesona Beteiligungsverwaltung GmbH (Gesona).

The credit portfolio of KA New ...

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