DBRS Morningstar revises Trend to Negative, ratings confirmed
On 26 May 2020 DBRS Morningstar confirmed the Long-Term Issuer Rating of Rabobank at AA and the Short-Term Issuer Rating at R-1 (high). The trend on all ratings has been changed to Negative from Stable.
According to DBRS Morningstar “The change of the trend to Negative on Rabobank’s ratings reflects our view that the scale of economic and market disruption resulting from the coronavirus (COVID-19) pandemic is negatively affecting the Group’s operating environment. This will translate in lower revenues and higher loan loss provisions in 2020 for the Group, on the back of profitability and efficiency levels that are already modest relative to similarly rated peers.
The confirmation of Rabobank’s Long-Term Issuer rating at AA takes into account the Group’s robust regulatory capital position and substantial cushions over minimum regulatory requirements which should withstand the impact of expected asset quality deterioration. The ratings continue to reflect the Group’s very strong retail and commercial franchise in the Netherlands, as well as its global franchise in food & agriculture financing."
The full press release is available below.