| Fitch Rates New ABN AMRO Bank N.V. 'A+'; Affirms RBS N.V. at 'AA-' |
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09/02/2010 11:34 (733 Day 11:12 minutes ago) | |||||
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The FINANCIAL -- Fitch ratings has on February 8 assigned the new ABN AMRO Bank N.V. (new ABN AMRO) a Long-term Issuer Default Rating (IDR) of 'A+' with a Stable Outlook.
Fitch has also assigned the bank a Short-term IDR of 'F1+', an Individual Rating of 'C/D', a Support Rating of '1' and a Support Rating Floor of 'A+'.
The new ABN AMRO has been created as a separate legal entity from the former ABN AMRO Bank - since renamed RBS N.V. - and will be 100%-owned by a holding company entirely owned by the Dutch State after the legal separation. Management expects this to occur before mid-2010. The new ABN AMRO consists of the assets and liabilities of the Dutch retail and SME businesses and Dutch and international private banking businesses transferred from the former ABN AMRO Bank through the legal demerger and other transfers.
The new ABN AMRO's IDRs, Support Rating and Support Rating Floor reflect potential additional support from the Dutch State ('AAA'/'F1+'/Outlook Stable), in case of need, in line with the new ABN AMRO's role as one of the larger Dutch banks and its 100% state ownership. The Individual Rating reflects limited credit risk, good lending diversification and adequate capitalisation following the Dutch state capitalisation plan. However, it also reflects the operational risks involved in creating a standalone bank and weak profitability given a combination of revenue pressure and high costs, which reduce the ability to absorb impairment charges.
RBS N.V. consists of the remaining assets and liabilities of the former ABN AMRO. These businesses acquired by The Royal Bank of Scotland Group plc (RBSG, rated 'AA-'/'F1+'/Outlook Stable) include equities, international cash management, trade finance and corporate lending, which are managed within RBSG's global transaction services and global banking and markets divisions. RBS N.V.'s ratings reflect Fitch's view that there is an extremely high probability that support from RBSG would be forthcoming in case of need. In Fitch's view RBS N.V. is strategically important to - and becoming increasingly integrated with - its parent, RBSG. The adoption of the RBS brand further strengthens RBS N.V.'s importance to the group.
Outstanding mortgage covered bonds have been allocated to new ABN AMRO following the legal demerger. Fitch has affirmed the 'AAA' rating on ABN AMRO's mortgage covered bonds. For further information please see the separate comment entitled 'Fitch: ABN AMRO De-Merger Will Not Impact 'AAA' Covered Bond Rating', dated 5 February, 2010.
The rating actions are as follows:
ABN AMRO Bank N.V. (new ABN AMRO)
RBS N.V.
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