DBRS confirms all Bankinter credit ratings and upgrades outlook to stable
The agency considers that the pandemic has had much less of an impact on the Bank’s balance sheet than anticipated, and that Bankinter has maintained solid capital and profitability ratios throughout the period.
This latest outlook upgrade by DBRS follows a similar upgrade made by S&P Global Ratings in June.
Credit rating agency DBRS Morningstar has confirmed all the credit ratings of Bankinter, while upgrading the outlook from “negative” to “stable”.
DBRS bases this new outlook on the strength shown by Bankinter in the wake of the COVID-19 pandemic, which had much less of an impact on the Bank’s asset quality than initially anticipated following the withdrawal of government support measures. DBRS likewise confirmed the Bank’s ability to handle any possible worsening of the situation throughout 2022.
DBRS also notes that the Bank’s capital and profitability levels have remained resilient throughout this period.
As for the impact that the spin-off of Línea Directa Aseguradora will have on the Bank’s accounts, the rating agency believes that Bankinter will be able to compensate for the insurer’s absence through increased revenue diversification, both from the banking business in Spain and from new markets and businesses in which it is already present. Of these, DBRS highlights the growth of the international business.
The agency’s confirmation of Bankinter’s long-term issuer credit rating at “A” (low) was motivated by the Bank’s solid profitability ratios, even after the spin-off of Línea Directa. DBRS also notes that “Bankinter’s asset quality remains notably better than that of its peers in Spain”.
In its report, the rating agency also cites Bankinter’s capital position. At the end of September, the Bank had a CET1 fully-loaded capital ratio of 12.3%, compared with 11.97% a year earlier and well above the ECB’s minimum capital requirement of 7.68%.
DBRS also cites the good results obtained by the Bank under the latest stress tests conducted in July of this year by the European Banking Authority (EBA). Bankinter sustained the least impact under the adverse scenario among all Spanish banks and the third smallest impact among all European banks.