Standard & Poor’s Ratings Services has affirmed its ratings on ING Bank NV and related entities, including its ‘AA-‘ long-term and ‘A-1+’ short-term counterparty credit ratings. The outlook on ING Bank is stable.
These ratings actions occurred in conjunction with other ratings actions on the wider ING Group.
“The ratings on ING Bank and its subsidiaries reflect the fact that, while the bank’s financial position has weakened somewhat as a result of subdued profitability and lower capitalization, it continues to benefit from its solid position in retail and commercial banking in the Benelux countries, a strengthened strategic focus, and its core position in the ING Group,” says Standard & Poor’s credit analyst Moira Taylor.
ING Bank and INGV are both wholly owned, core subsidiaries of ING Groep NV. Because of INGV’s still strong financial profile, on an operating basis, and the increasingly intertwined strategy, management, and operations of the banking and insurance companies, Standard & Poor’s assigns credit to this affiliation.
“The stable outlook reflects the assumption that the bank continues to remain a core member of the ING Group,” adds Taylor. “It is also based on the assumption that strategic moves to harness further cost and income synergies and to further reduce remaining higher risk businesses will enhance the bank’s risk profile and facilitate greater earnings stability in the medium term. In addition, the likely introduction of stock dividends by ING Groep is expected to assist earnings retention, thereby enhancing future capitalisation.”