22 June 2022
- Among the main reasons for the rating upgrade are the agreements reached over the past two years with fund management companies and other entities, as well as the strength of the bank's capital.
MADRID, 22 JUNE 2022- The rating agency Fitch today announced the upgrading of Cecabank's long-term rating from BBB- to BBB, with a stable outlook. With regard to the short-term rating, it remains at F3, also with a stable outlook.
Cecabank is the benchmark custodian bank in Securities Services in Spain and Portugal and a leading provider of Payment, Treasury Management and Technological Platform solutions. The synergies offered by this combination of businesses in times of market instability, which has also contributed to the rating upgrade, particularly favours its resilience.
The entity has reinforced its customer base and portfolio of services, which has allowed it to continue to create value for the market. For this reason, key among Fitch's arguments for the rating upgrade are the agreements reached over the past two years with fund management companies and other entities that have enabled Cecabank to strengthen its custody and depositary business, as well as its position in this market.
Finally, Fitch has recognised Cecabank's moderate risk appetite, underscoring the robustness of operational risk systems and controls, as well as the strength of the bank's capital, with a high CET1 ratio of 30.1% at the close of 2021; well above the requirements set by the supervisor. Both factors have had a positive influence on the assessment.
This rating upgrade strengthens Cecabank's position as a leading provider of post-trading services in Spain and Portugal and reinforces the recognition of the bank's commitment to its customers.
