Moody’s reaffirms the CEB’s Aaa rating
10 December 2012
The Aaa rating was maintained thanks to the CEB’s prudent risk management framework and excellent asset quality track record despite a challenging operating environment, very high liquidity levels, and strong capital base. Moody’s also highlighted CEB’s stable profitability as well as the fact that CEB’s rating is further underpinned by its preferred creditor status.
The key rating drivers for changing the CEB’s outlook to negative are “the potential that low-probability but high-impact events, including the possibility of multiple exits from the euro area, would result in significant impairments to the CEB’s assets” and also “the high likelihood of a strong correlation between the credit standing of the CEB’s largest shareholders in such extreme scenarios, which would require CEB to rely on its shareholders to meet callable capital commitments”.