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Standard & Poor’s affirms CEB’s AA+ rating with a ‘positive’ outlook

9 July 2018

PARIS - On 28 June 2018, Standard & Poor’s affirmed the CEB’s excellent long-term issuer credit rating at ‘AA+’ associated with a ‘positive’ outlook and its short-term issuer credit rating at ‘A-1+’.

Standard & Poor’s (S&P) annual rating assessment of the CEB key drivers are:

  • increased lending activity, with project approvals rising to €3.9 bn in 2017
  • strengthened role as a favoured funding contributor to social investments and sustained funding relevance

In its rationale, S&P highlights the Bank’s ‘very strong’ business and financial profile.

The business profile is assessed on the basis of CEB’s governance, role and public-policy mandate. S&P highlights the strengthening of the CEB’s public-policy mandate as well as its relevant preferred lender position, in terms of social projects dedicated to some of its smaller member states where alternative financing solutions are scarcer.

S&P brings to the fore the CEB’s very strong financial profile and the improvement of its risk-adjusted capital ratio (22%), due to enhanced risk-weighted assets. On another note, the deleveraging effort optimises the equilibrium between debt and liquidity, whilst, according to S&P, preserving a high level of treasury assets in comparison with many highly rated international financial institutions.

Research update: Multilateral Lender Council of Europe Development Bank ‘AA+’ Ratings Affirmed; Outlook Remains Positive

Standard & Poor's

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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.

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