The credit-rating agency Standard & Poor’s Global Ratings increased the ratings of KBC Bank and ČSOB, part of KBC Group
On October 27, one the biggest credit-rating agencies – Standard & Poor’s Global Ratings - increased the rating of KBC Bank and ČSOB (Ceskoslovenska Obchodni Banka), part of KBC Group. The agency reviewed the ratings of both banks, upgrading the long-term ratings of KBC Bank and ČSOB from 'А' with a stable outlook to 'A' with a positive outlook, as the short-term ratings of both banks were increased to 'A-1'.
According to Standard & Poor’s ratings, financial institutions, assigned with a long-term rating 'A', have a strong capacity to meet their financial commitments, but are to a certain extent more susceptible to unfavorable effects from changes in circumstances and economic conditions, compared to debtors in higher-rated categories. In respect of short-term rating, financial institutions rated as 'A-1', have a strong capacity to meet their financial commitments. This is the highest category of Standard & Poor’s Global Ratings in terms of short-term rating.
According to Standard & Poor’s, the positive review of KBC Bank reflects their expectation that over the next two years the bank will implement its strategy for maintaining a high regulatory capital and that it will build a large buffer of instruments to protect the large creditors. In addition, they say that the rating’s review of the KBC Group's subsidiary ČSOB is positive, because it reflects the review of KBC Bank's rating. In case of any future changes, they will affect also this essential for the group bank.
The agency maintains the ratings assigned to the strategic for KBC Group subsidiaries – KBC Ireland and United Bulgarian Bank. In June 2017, shortly after its acquisition by KBC Group, the rating of United Bulgarian Bank (UBB) was increased by Standard & Poor’s Global Ratings by 4 rates – from 'В' to 'ВВ+', as the „watch“ outlook was replaced with „positive“.
About KBC Group (www.kbc.com)
KBC is an integrated bancassurance group with a variety of channels which is oriented mainly to individual clients, SME and local medium-sized corporate clients. It is concentrated on its main markets in Belgium, Bulgaria, Czech Republic, Hungary, Ireland and Slovakia. The Group is present also in other selected countries and regions worldwide. KBC's headquarters is located in Brussels (Belgium). The Group employs over 38 000 people and is listed on Euronext Brussels stock exchange (stock symbol - KBC).