La banque de développement social pour l’Europe

Rating AA+/Aa1/AAA/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 30 juillet 2021, 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 17 septembre 2021, Scope Ratings a maintenu sa 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+*”.

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)

Moody’s : Aa1, perspective stable

“The CEB key credit strengths are its robust liquidity given its conservative framework, strong access to funding as well as its very healthy asset performance over time. Our assumption of CEB's preferred creditor status also reinforces our already favourable assessment of its asset quality compared to similarly rated peers.”

“In particular, the CEB has enhanced its visibility as an active partner in responding to the European migrant and refugee crisis but also to the growing demand for more sustainable and inclusive growth after years of underinvestment in socially oriented investment projects. CEB's involvement in the European response to the coronavirus crisis further solidified its importance to members.”

“We [Moody’s] consider CEB’s liquidity and funding position to be very strong with a score of “aa3” for its liquidity resources and a score of “aa” for the quality of its funding, which results in an assigned score of “aa2”.”

“CEB scores very highly in our assessment of funding and market access. It fulfills its borrowing requirements via bond issuance in the international capital markets. Having demonstrated the strength of its market access during the euro debt crisis, the CEB has again been able to regularly tap debt markets at affordable rates since the onset of the pandemic. CEB's investor base is diversified, both in terms of institution type and geography. CEB is included in the ECB quantitative easing programme and its bonds are included in its purchasing programme along with those of other European MDBs.”

“Our [Moody’s] “+1” adjustment for quality of management reflects our long-standing view that the CEB's management (including risk management) is among the best in class. The results of this can be seen in its unusually strong asset quality, with the bank only ever recording one NPL in its history. CEB has quite stringent capital monitoring in place.”

“We [Moody’s] assess CEB’s non-contractual support as “High” given the track record of support the bank has received from shareholders but also peers and the EU since its creation (six capital increases, the last in 2011, with no track record of arrears on capital contributions). In addition, we believe that non-contractual support has increased over the past five years, and had been further reinforced by the CEB's provision of emergency support during the pandemic shock. High non-contractual support is also reflected in other forms of financial support such as support to trust funds.”

Credit opinion (3 août 2021)
Annual Issuer in-depth (4 août 2021)

Standard & Poor's : AAA, perspective stable

The stable outlook reflects our expectation that over the next two years, the Council of Europe Development Bank (CEB) will balance its heightened disbursement levels prompted 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)

Scope Ratings : AAA*, perspective stable

“The Council of Europe Development Bank’s (CEB) AAA rating reflects the supranational’s ‘excellent’ intrinsic strength and ‘high’ shareholder support. The CEB’s institutional profile benefits from an increasing strategic role for its shareholder governments and excellent governance. Its social mandate, along with shareholders’ strong responses and financing demand during the 2015 refugee crisis and the Covid-19 health crisis, supports its unique role among peers.”

“The CEB’s financial profile benefits from excellent asset quality with no non-performing loans (NPLs) and high average borrower quality due to its focus on the public sector, predominantly in Europe. It also benefits from preferred creditor status (PCS) for its sovereign exposures and strong geographical diversification. The CEB’s liquidity profile is exceptionally strong, and its funding profile benefits from strong market access. Stable net profits continue to strengthen its capital base.”

“Finally, the CEB benefits from highly rated key shareholders. The largest European economies – Germany (AAA/Stable), France (AA/Stable), Italy (BBB+/Stable), Spain (A-/Stable), the Netherlands (AAA/Stable), Belgium (AA-/Stable) and Greece (BB+/Stable) – are joined by Turkey (B/Negative) to form the CEB’s key shareholders, whose weighted average rating is A. This drives Scope’s high assessment of shareholder support.”

“The CEB’s loan book benefits from a very high degree of credit protection overall. When it comes to sovereign exposures, the CEB benefits from PCS as evidenced during the default episode of Greece. Scope expects the CEB to continuously benefit from PCS given the high share of public sector exposures and expected reputational concerns among its highly rated borrowers.” 

“In addition, The CEB’s loan portfolio is well diversified across member states”

“The CEB’s financial profile is further underpinned by its conservative liquidity management and high liquid asset buffers.”

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

Communiqué Scope Ratings (17 septembre 2021)

* non-sollicitée