Fitch Ratings (Fitch) announced on 9 December 2022 it has reaffirmed Triodos Bank’s Long-Term Issuer Default rating at ‘BBB’ and Viability Rating at ‘bbb’. Fitch has revised the outlook from stable to negative.
Fitch’s rating analysis was done as part of the regular annual review process.
According to Fitch, Triodos Bank’s ratings primarily reflect its established niche franchise and business model in the sustainable banking segment and an average - yet constrained - profitability. The ratings also consider Triodos Bank's solid capitalisation, which compares well with those of similarly rated peers. The bank's adequate asset quality and healthy funding and liquidity profile support the ratings.
According to Triodos Bank, the rating confirms the strength of its capital, profitability and balance sheet. Regarding the adjustment of the outlook, Triodos Bank understands Fitch’s reasoning that the legal disputes with some of its depository receipt holders regarding the suspension of trade of its depository receipts may create a certain level of uncertainty.
The bank is committed to restoring tradability through an MTF listing and remains confident that this is in the best interest of its stakeholders, will therefore ease the risks identified by Fitch what could enable Fitch to revise the outlook to stable again.
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