Rabobank in business

7-12-2007 |

Moody’s Investors Service today said that the ratings of Rabobank (Aaa/P-1/B+) and stable outlook are not affected by the company’s announcement that it would be bringing on to its balance sheet in early 2008 the assets of a Structured Investment Vehicle (SIVs) sponsored by the bank. The SIV is Tango Finance Limited which had total cash assets of approximately Eur 5.2 billion as of November 2007 and, according to Rabobank, fully funded until the end of January 2008.

Moody’s said in its opinion this action by Rabobank to assist in the orderly unwinding of Tango is not material given the minimal expected impact on the bank’s Tier 1, which Moody’s estimates will be approximately 10 b.p. , and the relatively small size of the assets being assumed in relation to Rabobank’s consolidated assets which stood at Eur 592 billion as of 30 June 2007. Moody’s noted that the group’s Tier 1 ratio stood at 10.2% as of 30 June 2007.