La banque de développement social pour l’Europe

Rating Aa1/AAA/AA+/AAA

La Banque de Développement du Conseil de l’Europe est notée par Moody’s, Standard & Poor’s, Fitch Ratings et Scope Ratings*. La très bonne notation long terme (Aa1/AAA/AA+/AAA) dont elle bénéficie est le reflet de sa solidité financière, de l’appui de son actionnariat et de sa gestion rigoureuse des risques. Le 3 juillet 2020, Moody’s a maintenu sa notation à long terme pour la CEB à ‘Aa1’ assortie d’une perspective stable. Le 23 juillet 2021, Standard & Poor’s a confirmé sa notation AAA, avec une perspective stable. Le 26 juillet 2021, Fitch Ratings a révisé sa perspective de notation pour la CEB de ‘stable’ à ‘positive’ tout en confirmant sa note à long-terme à ‘AA+’.  Le 2 octobre 2020, Scope Ratings a assigné sa première notation* pour la CEB à AAA avec une perspective stable. La note de la dette à court terme de la CEB attribuée par les agences de notation atteint le niveau le plus élevé sur l'échelle de notation, à savoir “P-1/A-1+/F1+/S-1+*”.

Moody’s : Aa1, perspective stable

“The credit profile of CEB is supported by its prudent risk-management framework. It has resulted in a favourable track record of asset quality in spite of a challenging operating environment over the past couple of years. CEB's credit profile also reflects its very high liquidity levels. Moreover, the bank has achieved enhanced visibility as an active and prominent partner responding to social pressures, including the refugee crisis and more recently the coronavirus pandemic, in Europe.”

“We [Moody’s] consider CEB’s liquidity and funding position to be very strong with a score of “aaa” for its liquidity resources and a score of “aa” for the quality of its funding, which results in an assigned score of “aa2”.”

“CEB retained good access to the capital markets, with an investor base diversified by institutions as well as by geography. CEB's access to funding was tested again with the coronavirus crisis, but the bank maintained strong market access, illustrated by successive issuances at favourable rates since the coronavirus crisis outbreak.”

“CEB's sound governance framework is illustrated by its prudent risk management policies, and high standard governance principles, as illustrated by our “+1” adjustment for quality of management.”

“CEB’s involvement in the coronavirus crisis response, and the associated increase in lending, further supports the importance of its mandate for its shareholders. Lending had already increased significantly following the migrant crisis, as its members shifted their focus on coping with a large backlog of social related investment needs. CEB is the only MDB to have a purely and long standing social expertise. The bank was also selected by the EU as one of its financial partners for implementing the InvestEU Programme, which, alongside the coronavirus response, will support the bank’s relevance for its shareholders.”

Credit opinion (3 juillet 2020)
Annual Issuer in-depth (27 juillet 2020)

Standard & Poor's : AAA, perspective stable

The stable outlook reflects our expectation that over the next two years, theCouncil of Europe Development Bank (CEB) will balance its heighteneddisbursement levelsprompted by the coronavirus pandemic and a strong lending dynamic, with a sustained, extremely strong financial profile. We expect the bank's policy relevance and funding importance will continue, with ongoing solid shareholder engagement with its activities. We also assume CEB will continue to enjoy excellent preferred creditor treatment (PCT).”

“We [Standard & Poor’s] base our ratings on CEB's extremely strong enterprise risk and financial risk profiles. Management's actions over the past three years has strengthened the bank's financial risk profile, allowing it to mount a solid response to the wide-reaching pandemic.”

“We [Standard & Poor’s] believe that CEB's important ramp-up in COVID-19-related lending, through a fast-track procedure introduced in the run-up to the pandemic, has further accentuated the institution's policy relevance.

“The bank entered 2020 from a position of financial strength, with an extremely strong stand-alone capital position, and very strong liquidity and funding providing sufficient buffers for it to respond swiftly.”

“In our [Standard & Poor’s] opinion, CEB benefits from strong governance and risk management standards. Shareholders remain supportive and acknowledge the bank's importance as a key contributor in its niche financing segment. Member countries are directly involved in defining CEB's policy.”

“We [Standard & Poor’s] expect CEB's extremely strong stand-alone financial risk profile, on the back of its resilient capital position and very strong funding and liquidity, will allow the bank to absorb the pressures resulting from its short-term ramp-up in lending.”

“CEB's solid financial standing has facilitated the bank's transition into a more dynamic disbursement profile. This transition has entailed a strengthened funding profile where a move to two-way Credit Support Annexes (CSAs) on its derivatives portfolio has opened up additional markets, and further enlarge CEB's investor base thanks to increasing issuance volumes.”

“Under our [Standard & Poor’s] liquidity stress scenario, at all horizons up to one year, CEB would fully cover its balance-sheet liabilities without market access.”

Rating report (23 juillet 2021)

Fitch Ratings : AA+, perspective positive

“The revision of the Outlook reflects resilience in the bank's solvency profile, which was on a positive trend pre-pandemic. Capitalisation and asset quality metrics have remained robust despite the Covid-19 crisis. CEB's ratings are driven by its Standalone Credit Profile (SCP), assessed at 'aa+'. The SCP reflects the lower of our solvency (aa-) and liquidity (aaa) assessments, adjusted upwards by two notches as a result of the bank's low-risk business environment.”

“Unlike other multilateral development banks (MDBs) with large non-sovereign operations, CEB has not recorded any non-performing loans (NPLs), maintaining its excellent asset quality record.”

“CEB received strong demand from member states in 2020 to provide funding to governments to address the health needs and social impact resulting from the pandemic, in line with the bank's social mandate.”

“CEB's 'aa-' solvency assessment balances the bank's 'strong' capitalisation assessment and 'very low' risk profile.”

“CEB's 'very low' risk profile reflects the bank's 'very low' credit, equity, and market risks.”

“We [Fitch Ratings] assess the bank's preferred creditor status (PCS) as 'strong', which translates into a two-notch uplift over the average rating of loans to 'A+'.”

“CEB's 'aaa' liquidity assessment reflects the bank's excellent liquidity buffers and strong credit quality of its treasury portfolio.”

“CEB's 'low' risk business environment translates into a two-notch uplift over its solvency assessment.”

Communiqué Fitch Ratings (26 juillet 2021)

Scope Ratings : AAA*, perspective stable

“The AAA rating assigned to the Council of Europe Development Bank (CEB) reflects the supranational’s highly rated key shareholders, a strong liquidity position, very high asset quality and its increasing strategic importance particularly for EU member states.”

“The CEB’s counter-cyclical mandate to provide lending for projects with a social and/or environmental focus in its member states as well as its role in the context of the coronavirus pandemic, raises the strategic importance of the bank for its key shareholders, resulting in a very supportive political environment.”

“In addition, in line with most multilateral development banks, the CEB’s loan portfolio benefits from preferred creditor status (PCS) as evidenced during default episodes in the case of Greece and Former Yugoslavia. Scope expects that the CEB will continuously benefit from PCS given the high share of public sector exposures and expected reputational concerns among its highly rated borrowers.”

“It is Scope’s view that the CEB’s prudent liquidity policies result in a high and stable level of liquid assets, providing a substantial cushion in the context of increased lending volumes due to the bank’s Covid-19 response and allow the CEB to fulfil its mandate especially in times of heightened activity and uncertainty.”

“Another factor supporting the CEB’s AAA rating is its strong capital market access.”

“Scope also identifies the CEB’s well-diversified loan portfolio with a high average borrower quality and strong asset quality as a core credit strength.”

“The bank’s loan portfolio is well diversified across member states, which limits concentration risk.”

“Scope notes positively that the CEB has been profitable every year with average annual returns on equity of 3.38% since 2015 and with stable annual earnings of around EUR 105mn over the past three years.”

Communiqué Scope Ratings (2 octobre 2020)

* non-sollicitée