S&P Global Ratings affirmed the A/A-1 long- and short-term issuer credit ratings of ABN Amro Bank NV, with the outlook revised to stable from negative.
It also revised the group's stand-alone credit profile to "bbb+" from "a-," lowering the ratings on the Dutch bank's senior nonpreferred debt and other hybrid instruments by one notch, and affirmed the A+/A-1 resolution counterparty ratings and A/A-1 certificate of deposit.
The ratings action reflects the continued strengthening of the bank's balance sheet and the issuance of bail-in-able instruments in 2021, which reinforces the protection of senior preferred creditors, while the outlook assumes a "rigorous execution" of the wind-down of the bank's corporate and institutional banking activities, the rating agency said.
Ratings said it expects ABN Amro's additional loss-absorbing capacity to stay above 8% of its measure of risk-weighted assets by the end of 2022, as the wind-down of the bank's corporate banking non-core business reduces RWAs and the bank increases
The bank's profitability is expected to remain under pressure in the near future due to the extended low interest rate environment, low growth prospects in its targeted market segments and potential upcoming one-offs because of the wind-down, Ratings said.