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Fitch Ratings affirms CEB’s AA+ rating and revises the outlook from ‘stable’ to ‘positive’

3 September 2019

PARIS - On 3 September 2019, Fitch Ratings affirmed the excellent ‘AA+’ long-term issuer credit rating for the CEB. Moreover, CEB’s rating outlook has been revised from ‘stable’ to ‘positive’, reflecting the following rationales:

  • The continued improvement of CEB’s solvency metrics,
  • the assessment of CEB’s capitalisation has been revised from ‘moderate’ to ‘strong’,
  • CEB has maintained an ‘excellent’ performance of its loan book with no non-performing loans.

Fitch Ratings’ assessment, based on its most recent methodology which integrates a capital ratio embedding risk-weighted assets, spotlights CEB’s very cautious risk management policies and the recent development of its loan portfolio toward northern and western European countries. Therefore, Fitch’s usable capital to risk-weighted asset ratio (FRAR) for the CEB reach the best assessment possible, leading to an improvement of its capitalisation assessment from ‘medium’ to ‘strong’. 

Furthermore, CEB’s liquidity was, once again, put to the fore with a ‘AAA’ assessment underpinned by its excellent liquidity buffer and the strong quality of its treasury portfolio. Through the appraisal of CEB’s Governance, its countries of operation or the size of its loan portfolio, Fitch Ratings assesses CEB’s business environment at the highest level possible.

Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (AA+ with Fitch Ratings, outlook positive, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.

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