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Standard & Poor’s raised the credit rating of KBC Bank

Standard & Poor’s Global Ratings raised the credit rating of KBC Bank and Ceskoslovenska Obchodni Banka (CSOB), which is also part of KBC Group. The agency reviewed the ratings of the two banks by raising CSOB and KBC Bank long-term ratings from “A” with a stable outlook to “A” with a positive outlook and the short-term ratings of both banks being raised to “A-1”.

According to Standard & Poor’s estimates, the A-rated financial institutions have a strong ability to meet their financial commitments, but to a certain extent are more prone to adverse effects of changes in circumstances and economic conditions than debtors in the higher rating.

In terms of short-term ratings, A-1 rating of the financial institutions have a strong capacity to meet their financial commitments. This is Standard & Poor’s Global Ratings’s highest short-term rating.

According to the rating agency, KBC Bank’s positive review reflects their expectation that in the next two years the bank will implement its strategy to maintain high regulatory capital and build a large buffer of tools to protect big creditors.

International credit agency experts point out that CSOB’s rating revision is positive as it reflects the revision of KBC Bank’s rating. In the event of future changes, they will also affect this key bank, predicted by Standard & Poor’s.

The agency retains the ratings of the key KBC Group subsidiaries KBC Ireland and United Bulgarian Bank (UBB). In June 2017, shortly after its acquisition by KBC Group, Standard & Poor’s Global Ratings increased the rating of the Bulgarian bank by four levels – from “B” to “BB+”, with the “under surveillance” perspective replaced by “positive”.

About Viliyana Filipova

Viliyana Filipova is 27 year-old girl from Varna, Bulgaria. She is founder and Chief Editor of Finance Apprise Journal, working also as analyzer on the world finance and commodity markets.

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