CREDIT OPINION - Council of Europe Development Bank – Aa1 on review for upgrade
19 December 2022
We expect that the share of non-investment grade lending in CEB's portfolio will rise with the inclusion of Ukraine as a member state of the bank and strong demand for funding to support the post-war reconstruction effort in Ukraine. [...] Moreover, the €3.05 billion addition of callable capital will lead to a total increase of the bank’s callable capital of more than 60%; The very substantial increase of both paid-in and callable capital marks a step change for the CEB. [...] The bank approved €4.15 billion in projects in 2021 and €6 billion during its record year of lending in response to the coronavirus pandemic in 2020, and around €4 billion in the years immediately prior to the pandemic. [...] Loan approvals in the first half of the year were broadly in line with the same period in 2021, although the volume of loans disbursed was markedly lower at €1.56 billion in H1 2022 compared to €2.38 billion in the first half of 2021. [...] MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.