The social development bank in Europe

Credit rating AA+/Aa1

The Council of Europe Development Bank is rated by the three main international rating agencies: Fitch Ratings, Moody's Investors Service and Standard & Poor’s. It enjoys a high rating (AA+/Aa1) which mirrors its strong financial profile, the support of its shareholders and its stringent risk management policy. On 8 September 2016, Fitch Ratings affirmed the CEB’s long term Issuer Default Rating (IDR) at ‘AA+’ outlook stable. On 28 June 2016, Moody’s maintained the CEB's long term rating at Aa1 with stable outlook. On 23 June 2016, Standard & Poor’s confirmed the CEB’s long term rating at ‘AA+’ with a stable outlook. The rating of CEB’s short-term debt is affirmed at ‘F1+/P-1/A-1+’ which is the highest grade of the rating scale.

Fitch Ratings: AA+, stable outlook

“The ‘AA+’ long-term IDRs are fully driven by CEB’s intrinsic credit quality; most notably its high level of solvency (assessed aa-), its excellent liquidity (assessed at aaa) and its low risk business environment, which provides an uplift of two notches to the solvency assessment of aa-, resulting in an intrinsic rating of aa+. ” 

“The bank’s strong solvency assessment is driven by the CEB’s very low risk profile, most notably the excellent performance of its loan book (no loan impairment)”

”The CEB enjoys one of the strongest liquidity profile among Fitch-rated MDBs”

“The Bank has excellent access to financial markets”

Fitch Ratings press release (8 September 2016)
Fitch Ratings Full rating report (12 October 2016)

Moody's: Aa1, stable outlook

CEB’s credit profile reflects two significant strengths: (1) its conservative risk management policies and preferred creditor status (PCS), which have resulted in a strong asset performance track record: the bank has recorded only one default in its entire lending portfolio over its 60-year history; and (2) a consistently strong liquidity policy and conservative asset-liability management policies, which greatly reduce financial risks”

“This makes CEB one of the most liquid institutions among Moody’s-rated MDBs”

“The stable outlook on the CEB Aa1 rating reflects the shock resilience afforded by the bank’s strong liquidity level”

“In 2015, the bank played an important role in helping its member countries respond to the migrant and refugee crisis. In particular in October 2015, the bank launched a new grant facility called the ‘Migrant and Refugee Fund’ (MRF)” “The Bank’s rapid response the unfolding migrant and refugee crisis in Europe reflects the bank’s expertise in dealing with such challenges.”

“We [Moody’s] assess CEB’s Capital Adequacy as ‘Very High’ which is based on its history of exceptional asset performance and improving borrower creditworthiness, which is combined with its gradual improvement in capital position along with a still high (albeit declining) leverage ratio”

“CEB’s steady profitability is a credit strength”

“Our [Moody’s] ‘Very High’ assessment of the CEB’s Liquidity reflects the organisation’s prudent liquidity policy, conservative treasury operations and diversified sources of funding”

“Shareholders’ ability to support is high: The credit quality of the CEB member countries […] reflects high likelihood of support from the member countries if needed (in the form of callable capital)”

Moody's credit opinion (28 June 2016)
Moody's issuer in-depth (28 June 2016)

Standard & Poor's: AA+, stable outlook

“The CEB has started so step up its lending activities in the context of the European migrant and refugee crisis, which supports its strong business profile”

“We [Standard & Poor’s] base our assessment of the CEB’s business profile as ‘Very Strong’ on our view of the bank’s governance, role and public-policy mandate”

“We [Standard & Poor’s] assess the CEB’s financial profile as ‘Very Strong’, with the likely capacity to accommodate the CEB’s growth initiative over the 2017-2019 plan”

“[Standard & Poor’s] calculation of the bank’s risk-adjusted capital ratio of 21% at year-end 2015, an improvement from 18%”

“We [Standard & Poor’s] forecast that the CEB’s rate of internal capital generation and its ongoing deleveraging will enable it to maintain its capital ratios over the next few years while accommodating some loan book growth”

“We [Standard & Poor’s] note that if [CEB] maintains high liquid assets relative to its total exposures, compared with many other highly rated MLIs (Multilateral Lending Institutions). In our liquidity stress scenario, the bank would be able to continue fulfilling its mandate, even under extremely stressed market conditions, without access to the capital markets for at least two years”

Multilateral Lender Council of Europe Development Bank Ratings Affirmed At 'AA+/A-1+'; Outlook Stable (23 June 2016)
S&P rating report (28 July 2016)