Fitch affirms Rabobank at ‘AA-‘; Outlook Stable
On 24 November 2017 Fitch Ratings announced that it has affirmed Rabobank Long-Term Issuer Default Rating (IDR) at 'AA-' with a Stable Outlook, the Viability Rating (VR) at 'a+' and the Short-Term IDR at 'F1+'.
Rabobank's Long-Term IDR and senior debt ratings are one notch above the bank's Viability Rating which, according to Fitch, reflects the bank’s significant qualifying junior debt buffer.
Fitch is of the opinion that ‘the VR is underpinned by a modest risk appetite, which Fitch believes will remain central to the bank's strategy. The rating is also supported by the bank's leading market position in Dutch retail banking, complemented by a solid franchise in the global food and agriculture sectors. The rating factors in the expectation that Rabobank's capital ratios will remain sound while the amount of unreserved non-performing loans (NPLs) will decrease, and that the bank will maintain prudent liquidity and diversified funding.’
The rating agency expects Rabobank ‘to maintain a prudent approach to risk, reflected in low-risk underwriting standards, particularly in mortgage lending, and conservative approach to capital and liquidity management.’ Fitch also expects ‘the bank to focus on core markets and business segments.’