Bendigo and Adelaide Bank (ASX:BEN) said its long-term issuer credit rating was upgraded by Moody's to "A3" with a stable outlook from a "Baa1" with a positive outlook, according to a Friday Australian bourse filing.

The ratings firm earlier raised its baseline credit assessment and adjusted baseline credit assessment to "a3" from "baa1."

Its short-term rating was maintained at "P-2," and its subordinated debt was changed to "Baa1" from "Baa2."

Moody's said that the upgrades reflect the bank's very strong asset quality, very strong funding profile, and strong liquidity, per the filing.

Bendigo and Adelaide Bank's shares shed about 1% in recent Friday trade.