Moody’s affirms excellent CEB rating at Aa1

5 July 2017

PARIS - On 30 June 2017, Moody’s affirmed the CEB’s long-term issuer rating, the senior unsecured bond programme and shelf ratings at Aa1 with outlook stable.

Moody’s key drivers for its excellent rating at Aa1, outlook stable on the CEB are as follows:

  • strong liquidity levels
  • moderate level of shareholder support with signs of an increased relevance of the CEB following the migrants and refugees crisis in Europe
  • declining leverage

As a result of its conservative liquidity framework, Moody’s considers that the CEB remains one of the most liquid multilateral development banks among its peers. Its high liquidity level provides the Bank with a strong buffer in case of a severe risk scenario.

Despite its assessment of the CEB’s shareholder support as moderate, Moody’s affirms the increasingly positive impact of the Bank’s relevance as a key player in the migrant and refugee crisis, the possibility of the EU becoming a CEB member and the strong CEB shareholder support for the Bank’s fiduciary activities, such as the Migrant and Refugee Fund and the Regional Housing Programme.

The CEB’s declining leverage, although still high compared with that of its peers, is set off by its strong and conservative risk management policies and practices with an excellent track record of portfolio quality and on non-performing loans.

Moody’s Credit Opinion Update – 30 June 2017

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 (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook positive and AA+ with Fitch Ratings, 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.

Related links