EBRD and EIB welcomed the Triple-A rating by the Standard and Poor's agency
The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) welcomed the confirmation of its Triple-A rating by S&P. This agency backed the EIB and the EBRD performance and also expects the Banks' loan performance to remain good in 2012.
The rating agency Standard and Poor has confirmed the Triple-A rating to the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The EBRD underlined that, backed by a further increase in reserves and a reaffirmation of the Bank’s triple-A rating, the Bank is well placed to continue delivering a high level of investments to support the process of economic modernisation across its countries of operations. The EIB welcomed the S&P confirmation for the triple A rating, but it shows itself concerned on the negative outlook. However, Standard and Poor downgraded the credit rating of the European Financial Stability Facility (EFSF).
S&P describes of very high quality historically the EIB's franchise value and the historical performance of its loan portfolio, giving to it the triple A rating. S&P also expects the Bank’s loan performance to remain good in 2012. The franchise value relates to the weight that shareholders accord to the role of EIB and the associated importance of EIB to its EU shareholders. The EIB provides financing for sound investment projects that support economic growth and job creation.
In 2011 the EBRD made a record level of investments, providing strong support to a region that continues to face risks, especially from persistent economic tension in the eurozone. The EBRD expects to report realised profits in excess of €800 million for 2011, benefiting especially from strong net interest income. Backed by a further increase in reserves and a reaffirmation of the Bank’s triple-A rating and stable outlook from all three major international rating agencies, the Bank is well placed to continue delivering a high level of investments to support the process of economic modernisation across its countries of operations.