La banque du développement social en Europe

Rating AA+/AAA/Aa1

La Banque de Développement du Conseil de l’Europe est notée par les trois principales agences de notation internationales : Fitch Ratings, Standard & Poor’s et Moody’s Investors Service. La très bonne notation long terme (AA+/AAA/Aa1) 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 septembre 2019, Fitch Ratings a révisé sa perspective pour la CEB de ‘stable’ à ‘positive’, tout en confirmant sa note à long-terme à ‘AA+’. Le 15 février 2019, Standard & Poor’s avait amélioré la notation à long terme de la CEB à ‘AAA’ assortie d’une perspective stable, notation réaffirmée le 1er juillet 2019. Le 26 juillet 2019, Moody’s a affirmé la notation à long terme de la CEB à Aa1, assortie d’une perspective stable. La note à court terme de la CEB est maintenue par les trois agence de notation à ‘F1+/A-1+/P-1’, ce qui représente la note la plus élevée.

Fitch Ratings : AA+, perspective positive
“The revision of the Outlook on CEB's Long-Term IDR [Issuer Default Rating] to Positive reflects continued improvement in the bank's solvency metrics.” 

In line with Fitch's new approach for assessing capitalisation for multilateral development banks, CEB's capitalisation has been revised to 'strong' from 'moderate’. Concurrently, the bank has maintained an 'excellent' performing loan book with no non-performing loans (NPL).”

“CEB's 'very low' risk profile benefits from the high credit quality of its borrowers and its preferred creditor status (PCS), which Fitch assesses as 'strong'. The bank's average rating of loans improved to 'A-' at end-2018 (from 'BBB+'). The PCS adjustment translates into a two-notch uplift over the average rating of loans to 'A+', the highest in Fitch's MDB rating coverage.”

“Overall 'low' concentration risk, 'very low' market and equity risks and 'strong' risk management policies further contribute to CEB's 'very low' risk profile.” 

“CEB's 'aaa' liquidity assessment reflects the bank's excellent liquidity buffers and strong credit quality of its treasury portfolio (average rating of AA- at end-2018).”

Communiqué Fitch Ratings (3 septembre 2019)
Fitch Ratings Full rating report (9 octobre 2018)

Standard & Poor's : AAA, perspective stable
CEB has increased its relevance as a funding contributor in its niche market over the past three years, which together with the bank’s pristine track record of preferred creditor treatment, underpins its improved extremely strong enterprise risk profile.

The outlook is stable, since we [Standard & Poor’s] expect CEB’s strengths will remain unchanged in the next two years, particularly its newfound positive disbursement dynamics and corresponding funding relevance, together with its very solid liquidity position.

With its broadening mandate and increasingly tangible role as a social investor in member countries’ budgets, CEB has managed to scale-up its operations.”

We [Standard & Poor’s] observe an ongoing deleveraging initiative at the bank, which in combination with fairly contained profitability and no expectation of an imminent capital increase from the shareholders, leads us to maintain our view of very strong capital adequacy on a stand-alone basis.”

Our [Standard & Poor’s] funding ratios indicate that CEB is structurally able to cover its scheduled short-term debt repayments and loan disbursements without recourse to new issuance.”

Shareholders have been supportive since inception.”

Research update: Council of Europe Development Bank Upgraded To ‘AAA’ On Criteria Revision; Outlook Stable (15 février 2019)
Research Update (1er juillet 2019)
Rating report (12 Aout 2019)

Moody’s : Aa1, perspective stable
The Council of Europe Development Bank's (CEB, Aa1 stable) key credit strengths are its robust liquidity given its conservative framework, as well as its pristine track record of asset quality. The CEB's Development Asset Credit Quality (DACQ) score is relatively high and reflects our assumption of the CEB's preferred creditor status as well as ongoing improvements in the weighted average borrower rating.

The bank's social mandate is increasingly important to its members for strategic economic and political reasons. 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 social value added projects, including in western and northern Europe.

We [Moody’s] score CEB’s capital adequacy at “a1” based on the combination of a relatively high leverage ratio (defined as development related assets over usable equity) albeit declining, strong asset credit quality and exceptionally strong asset performance. Development asset credit quality (DACQ) is expected to improve as the exposure to highly rated borrowers in western and northern Europe increases.

We [Moody’s] assess CEB’s asset performance at “aaa”. CEB's asset quality track record is amongst the strongest of all Moody’s-rated MDBs. Since its inception in 1956, the bank has had only one nonperforming loan (NPL).

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”.

“Among these factors we [Moody’s] apply a ‘+1 positive adjustment’ to the quality of management; this reflects our [Moody’s] longstanding view that the CEB's management (including risk management) is among the best in class.”

“Despite a challenging operating environment (low interest rate, uncertainties due to Brexit and trade tensions between the US (Aaa stable) and China (A1 stable)) CEB has maintained a sound financial performance over the past few years.”

Annual Issuer in-depth (1er août 2019)
Communiqué de presse (26 juillet 2019)