Fitch raises Andbank's outlook to "stable" and confirms the BBB credit rating

The rating agency Fitch Ratings has raised Andbank's outlook to stable and confirms the long-term credit rating of "BBB".

NewsEditor
NewsEditor
29 September 2022 Thursday 11:37
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Fitch raises Andbank's outlook to "stable" and confirms the BBB credit rating

The rating agency Fitch Ratings has raised Andbank's outlook to stable and confirms the long-term credit rating of "BBB". The upward revision responds to a foreseeable improvement "in the profits and profitability of the entity thanks to the expansion of the volumes in the private banking business and its capacity to absorb credit risks". For the third consecutive year, Andbank is the bank with the best rating in Andorra.

In its report, Fitch assesses Andbank's "satisfactory" capitalization, its international presence and its adequate size in Andorra. In addition, it highlights its solid profits, the quality of its assets, high provisions and guarantees on loans.

In a statement, the Andbank group highlights the end of 2021 with a 20% increase in its assets under management, up to 30,200 million euros, thanks to the increase in customer positions (mainly in Spain), the behavior of the markets and the acquisition of the Degroof business in Spain. The rating agency expects that “the bank will continue executing its growth plans, benefiting from its private banking business in Spain and the entity's development in other geographies”.

The agency itself stresses that "in recent years, Andbank's profitability has shown signs of considerable resilience, supported by the increase in volumes in the private banking business" and considers that "the bank's growth plans and interest rate hikes should sustain the entity's profitability in the medium term”.

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