{"id":18065,"date":"2024-07-23T17:13:39","date_gmt":"2024-07-23T15:13:39","guid":{"rendered":"https:\/\/creandgroup.com\/fitch-referma-el-rating-de-creand-credit-andorra-a-bbb-i-posa-en-relleu-ladequada-capitalitzacio-del-banc-i-la-solida-posicio-de-lideratge-al-pais\/"},"modified":"2024-07-25T09:06:54","modified_gmt":"2024-07-25T07:06:54","slug":"fitch-affirms-creand-credit-andorras-rating-at-bbb-and-highlights-the-banks-adequate-capitalisation-and-leading-position-in-the-country","status":"publish","type":"post","link":"https:\/\/creandgroup.com\/en\/fitch-affirms-creand-credit-andorras-rating-at-bbb-and-highlights-the-banks-adequate-capitalisation-and-leading-position-in-the-country\/","title":{"rendered":"Fitch affirms Creand Cr\u00e8dit Andorr\u00e0\u2019s rating at \u2018BBB-\u2019 and highlights the bank\u2019s adequate capitalisation and leading position in the country"},"content":{"rendered":"\n

The ratings agency takes a positive view of the increase in profitability<\/strong><\/p>\n\n\n\n

The ample and well-managed liquidity was another favourable point in the assessment<\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n

Fitch Ratings affirms Creand Cr\u00e8dit Andorr\u00e0\u2019s long-term rating at \u2018BBB-\u2019 with a stable outlook. The ratings agency highlighted the bank\u2019s leading domestic franchise in Andorra, strengthened by its acquisition of Vall Banc. It also noted the \u201cimproved operating profit supported by higher interest rates, cost synergies from the integration of Vall Banc and reversal of credit provisions\u201d. The latter is a direct result of the positive evolution of non-performing loans. Moreover, Fitch expects the bank to maintain its business growth, which will enable it to continue boosting revenue generation to offset future interest rate cuts.<\/p>\n\n\n\n

Fitch further noted the bank\u2019s adequate capitalisation \u201cwith satisfactory buffers over their regulatory requirements\u201d, as well as its stable and well-managed liquidity. The ratings agency also mentioned the bank\u2019s support for the country\u2019s economy and business fabric, which translates into the highest lending ratios in the market.<\/p>\n\n\n\n

Fitch\u2019s commentary reiterates an issue that it highlighted in its last assessment, namely the ample structural liquidity of the business model, especially in private banking, which entails, among other things, the possibility of having a large portfolio of high quality fixed income investments.<\/p>\n\n\n\n

The assessment also positively considers the international business, noting increased profitability mainly in Luxembourg, Spain, and Miami, \u201cdespite intense competitive pressures\u201d.<\/p>\n\n\n\n

Fitch also highlights the bank\u2019s operating environment, which reflects the sound credit profile of the Principality of Andorra. The report also sets out the agency\u2019s opinion regarding the country\u2019s economy, \u201cwhich is expected to grow by 1.5% overall during 2024-2025\u201d, and about the association agreement with the European Union, which, if approved, could represent further integration of Andorra\u2019s banking system into the EU.<\/p>\n\n\n\n

Xavier Cornella, CEO of Creand, stated, \u201cThis assessment confirms our leadership in the country and endorses our business strategy, which has led to growth in all the territories in which we operate. We are upholding our strong support for Andorra\u2019s economy while continually improving the services we offer our clients\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

The ratings agency takes a positive view of the increase in profitability The ample and well-managed liquidity was another favourable point in the assessment Fitch Ratings affirms Creand Cr\u00e8dit Andorr\u00e0\u2019s long-term rating at \u2018BBB-\u2019 with a stable outlook. The ratings agency highlighted the bank\u2019s leading domestic franchise in Andorra, strengthened by its acquisition of Vall … Continued<\/a><\/p>\n","protected":false},"author":7,"featured_media":18042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"inline_featured_image":false,"footnotes":""},"categories":[400,406],"tags":[],"class_list":["post-18065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate","category-certifications"],"acf":[],"_links":{"self":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/posts\/18065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/comments?post=18065"}],"version-history":[{"count":0,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/posts\/18065\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/media\/18042"}],"wp:attachment":[{"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/media?parent=18065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/categories?post=18065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/creandgroup.com\/en\/wp-json\/wp\/v2\/tags?post=18065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}