Bloomberg

(Bloomberg) -- UBS Group AG was upgraded by S&P Global Ratings, which cited the Swiss bank’s wealth-management strategy and efforts to shrink its balance sheet.

The Zurich-based lender was raised to A-, the seventh-highest investment grade, from BBB+, according to a statement from S&P after European markets closed Monday.

The “wealth-management-focused business model, cohesive group strategy and successful deleveraging have improved the underlying creditworthiness of the group and its core subsidiaries,” the ratings agency said in its statement.

Legacy litigation risks will need to subside and the bank will need to be “comfortably” reaching financial targets for UBS to merit more upgrades, S&P said, giving UBS a “stable” outlook.

To contact the reporter on this story: Keith Campbell in London at k.campbell@bloomberg.net.

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net.

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