DBRS Morningstar Upgrades Deposit Ratings of Caixa Geral de Depósitos

DBRS Ratings GmbH (DBRS Morningstar) upgraded by one notch the Long-Term Deposit ratings of Caixa Geral de Depósitos, S.A. (CGD or the Bank) to BBB (high) from BBB. The Short-Term Deposit ratings were also upgraded to R-1 (low) from R-2 (high). A full list of rating actions is included at the end of this press release.

KEY RATING CONSIDERATIONS

The action follows DBRS Morningstar’s upgrade of the Republic of Portugal’s Long-Term and Short-Term Issuer ratings to BBB (high) R-1 (low) on October 4th, 2019. As a result of the upgrade, the Bank’s Long-Term Deposit rating is now positioned one notch above the Intrinsic Assessment. This takes into account the full depositor preference scheme in bank insolvency and resolution proceedings, implemented by Portuguese law in March 2019, and the decreasing likelihood for deposits to absorb losses.

RATING DRIVERS

The ratings of the Long-Term and Short-Term Deposits will generally be affected by changes in the Bank’s IA. Furthermore, the ratings could also be affected by any further changes in the legal framework for bank resolution and / or creditor hierarchy.

Notes:
All figures are in Euros unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (June 2019). This can be found can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include Portuguese Legislation (No. 23/2019), company documentation and financials, and S&P Global Market Intelligence. DBRS Morningstar considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS Morningstar does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve-month period. DBRS Morningstar’s outlooks and ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings GmbH are subject to EU and US regulations only.

Lead Analyst: Nicola De Caro, Senior Vice President, Global FIG
Rating Committee Chair: Elisabeth Rudman, Managing Director, Head of European FIG - Global FIG
Initial Rating Date: December 23, 2012
Last Rating Date: June 03, 2019

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Information regarding DBRS Morningstar ratings, including definitions, policies and methodologies, is available on www.dbrs.com.