Standard & Poor's raises apoBank's ratings

to AA- / A-1+ with outlook stable

06.12.2011

The rating agency Standard & Poor's (S&P) has raised apoBank's ratings to AA- (previous: A+) and A-1+ (previous: A-1) as part of the initial adoption of its new rating methodology for banks. The rating outlook remains stable.

As a so called 'core member' of the cooperative banking group the adjustment of apoBank's ratings is coherent with the upgrade of the ratings for the whole banking group, which is also rated AA- and A-1+ with outlook stable.

The rating for the hybrid Tier I preferred securities (silent partnership), issued by apoBank in 2003, was raised by four notches to A (previous: BBB-). Among other things this upgrade is based on an improved assessment of apoBank's stand-alone creditworthiness.

The stand-alone creditworthiness is determined by a newly introduced anchor, which in general is at a- for banks, that mainly operate in the German market. On this basis S&P also rates the stand-alone creditworthiness by four bank-specific factors, which have been also newly introduced: S&P rates apoBank 'moderate' with regard to capital and earnings and 'adequate' for its business position as well es for its risk position. Liquidity is also rated 'adequate', whilst funding is regarded as 'average'.

S&P has published the new rating methodology at the beginning of november. The rating agency now gradually apllies its new methodology. The objective of the methodological changes was to increase transparency as well as to improve the comperability of ratings for banks and other sectors. In this context S&P introduced the so called anchor rating and the four bank-specific factors 'business position', 'capital and earnings', 'risk position' and 'funding and liquidity'.

Here you can find an overview of apoBank's ratings.