31 July 2020
- The agency has affirmed the bank's long-term rating at "BBB-" and has upgraded Cecabank's outlook to stable
- Fitch highlights for its resistance to the impact of the pandemic and the bank's income stability thanks to its strengthened position in the post-trading market
Cecabank's ratings reflect the strengthening of its specialised business model which is well-positioned in Spain. It also underlines a moderate risk appetite, capital strength and a suitable financing and liquidity position.
The agency highlights that Cecabank has recently strengthened its position in the Spanish post-trading market. This is a result of two strategic agreements to provide depositary services to Kutxabank and Bankia. It is also due to the expansion of its business in Portugal.
According to the agency, the upgraded outlook reflects the fact that Cecabank's current rating has sufficient scope to absorb possible impacts arising from various potentially-downward economic scenarios.
Along these lines, Fitch believes that Cecabank's profitability will remain stable given the bank's low exposure to credit risk and thanks to the acquisition of recent depository businesses.
Operational risks, inherent in Cecabank's business, are managed effectively, as noted by the agency. The bank has addressed periods of market volatility with no major impacts.
Lastly, it has highlighted that as a result of the pandemic, Cecabank has adapted its systems and operations appropriately, thus strengthening its capacity to manage cybersecurity risks.
