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 7 September 2017, Fitch Ratings affirmed the CEB’s long term Issuer Default Rating (IDR) at ‘AA+’ outlook stable. On 30 June 2017, Moody’s maintained the CEB's long term rating at Aa1 with stable outlook. On 30 June 2017, Standard & Poor’s confirmed the CEB’s long term rating at ‘AA+’ with outlook revised to positive. 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
“CEB’s IDRs are driven by its intrinsic credit quality, notably its high level of solvency (assessed at aa-), its excellent liquidity (assessed at aaa) and the low-risk business environment it operates in, which provides an uplift of two notches to the solvency and liquidity assessment of aa-, resulting in an intrinsic rating of aa+.”
“As a result of its involvement in the resolution of the migrant crisis, CEB’s mandate considerably improved, and the higher quality of new loans weighs positively on its overall credit risk.”
”The bank’s strong solvency assessment is driven by CEB’s very low risk profile, notably the excellent performance of its loan book (no loan impairment), low concentration risk, very low market and equity risks and strong risk management policies.”
“CEB has one of the strongest liquidity profiles among Fitch-rated MDBs.”
“The bank has excellent access to financial markets.”
Moody's: Aa1, stable outlook
The Aa1 rating of CEB is based upon the combination of: (1) its prudent risk-management framework that has resulted in a favourable track record of asset quality in spite of a challenging operating environment over the past couple of years; and (2) very high liquidity levels that protect the institution from unexpected events and which exceed the levels of most of its rated peers.
We [Moody’s] assess the Capital Adequacy of CEB as 'Very High', balancing our view on its capital position, leverage and asset quality […] This is demonstrated by its excellent performance track record, having recorded only one loss in its portfolio in the course of its 60-year history.
CEB has demonstrated stable profitability over the past decade, with an average net profit of €109.5 million between 2006 and 2016, which is one of the least volatile in the Moody's-rated MDB universe.
We [Moody’s] assess the Liquidity Position of CEB as 'Very High' given that it has amongst the highest liquidity levels of all Moody's-rated MDBs, reflecting the conservative framework under which it operates
Standard & Poor's: AA+, positive outlook
“Responding to increasing demand, the CEB has, over the past years, meaningfully stepped up its lending activity. Project approvals and disbursements have increased notably.”
“Demand has been accentuated by the migrant and refugee crisis, and we foresee that CEB could cement its position as a favored and relevant funding contributor, adding momentum to its overall business profile and rating.”
“The ratings on CEB continue to reflect our[Standard & Poor’s] assessments of its business and financial profiles as very strong.”
“We [Standard & Poor’s] base our assessment of the CEB’s business profile on our view of the bank’s governance, role and public-policy mandate.”
“Our [Standard & Poor’s] funding ratios indicate that CEB is structurally able to cover its scheduled short-term debt repayments and scheduled loan disbursements without recourse to new issuance.”
“The positive outlook reflects our[Standard & Poor’s] view that CEB's public-policy role and mandate fulfillment is strengthening on the back of the bank's increased lending activity, and the institution's clear relevance”
Multilateral Lender Council of Europe Development Bank Outlook Revised To Positive on Strengthening Mandate Fulfillment (30 June 2017)
Rating report (1 August 2017)