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Standard & Poor’s affirms CEB rating at AAA with a stable outlook

4 July 2019

PARIS – Standard & Poor’s affirms its AAA rating on the Council of Europe Development Bank (CEB) with a stable outlook. 

Standard & Poor’s (S&P) published a research update on 1 July 2019, based on the financial year 2018, affirming CEB’s AAA rating with a stable outlook, the highest rating possible. CEB’s assessment has been further reinforced by:

  • the improvement of the Stand-Alone Credit Profile (SACP) from AA+ to AAA;
  • the upgrade of the financial risk profile from ‘very strong’ to ‘extremely strong’.

In its research update, S&P highlights CEB’s ability to maintain the very sound level of its capital metrics, despite its increase in lending activity. Moreover, S&P notes that CEB’s funding profile was strengthened through the ongoing move to two-way Credit Support Annexes on its derivative portfolio, which provides access to additional markets and further enlarges its investor base. 

Finally, S&P maintained its ‘extremely strong’ assessment of CEB’s enterprise risk profile highlighting CEB’s excellent track record of Preferred Creditor Treatment (PCT) and its ability to cement its position as a key social infrastructure financer throughout Europe.

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 (AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, 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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