Fitch assesses the purchase of Vall Banc and confirms the rating of Crèdit Andorrà

Fitch Ratings has ratified the entity Crèdit Andorrà's long-term rating of BBB– and has upgraded its outlook to stable.

Thomas Osborne
Thomas Osborne
10 October 2022 Monday 22:43
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Fitch assesses the purchase of Vall Banc and confirms the rating of Crèdit Andorrà

Fitch Ratings has ratified the entity Crèdit Andorrà's long-term rating of BBB– and has upgraded its outlook to stable. The rating agency has analyzed very positively the culmination of the Vall Banc merger and the operational integration of both entities. In this sense, the agency highlights that "the strength of the bank in Andorra will be further strengthened with the acquisition of Vall Banc, which will translate into a greater share of the national market and a greater capacity to capture profits". The report also confirms an adequate capitalization of the bank and a solid liquidity position of the entity.

Crèdit Andorrà's rating reflects Fitch Ratings' opinion on the improved state of the bank's profitability after the acquisition of Vall Banc, with an organic increase in business volume and the positive trend in interest rates.

The report emphasizes the leadership position in commercial banking and private banking in the principality, and also highlights the weight in the private banking sector in the international arena, especially in countries such as Luxembourg, Spain and Miami, the profitability of which complements the National.

Fitch Rating's analysis also takes into account the good prospects for Andorra's economic and financial environment, which has culminated in the improvement of the country's rating, which the entity has placed at A– with a stable outlook.

On the other hand, the bill for the Creation of International Reserves promoted by the Government of Andorra has been considered a highly positive element for the Andorran banking system, and the financial system's access to urgent liquidity provisions, as actions to mitigate the lack of a provider of last resort.

Xavier Cornella, CEO of the Crèdit Andorrà Group, pointed out that "the fact that Fitch has ratified our rating and improved our outlook to stable confirms that today we are stronger and that our leadership, as a result of the acquisition of Vall Banc, is consolidated in the Andorran financial market”. For Cornella, this rating from the Fitch agency endorses Crèdit Andorrà's strategy "to continue growing together with our clients and with Andorra".