By Nathalie Tadena
Standard & Poor's Ratings Services unveiled various ratings
actions on Dutch banks, including lowering its outlook on ING Groep
N.V. (ING, INGA.AE) to negative and issuing a handful of one-notch
downgrades, noting Dutch banks are exposed to increased economic
risks as a result of a potentially more protracted downturn in the
Netherlands and wider euro zone.
The ratings firm also noted that the prolonged correction in the
property market and measures to reduce the budget deficit will
continue to weigh on the economy, although the overall impact on
the banking sector is expected to be moderate. However, S&P
noted it continues to view the Dutch economy as structurally sound
and competitive and believes the likelihood of a very sharp
increase in housing-related losses is low.
S&P lowered its investment-grade ratings one notch on ABN
AMRO Bank N.V., Cooperatieve Centrale Raiffeisen-Boerenleenbank
B.A. or Rabobank Nederland, F. van Lanschot Bankiers and the SNS
REAAL N.V. (SR.AE) group as a result of their exposure to the Dutch
market and to other euro-zone countries with moderately increased
risk. ABN's rating was lowered to A, Rabobank Nederland's rating to
double-A-minus, F. van Lanschot Bankiers' rating to triple-B-plus
and SNS REAAL's rating to triple-B-minus. The outlook on the SNS
REAAL group is negative, while the outlook on the other entities is
stable.
S&P lowered its outlooks on ING Groep, ING Bank N.V. and
Achmea Hypotheekbank N.V. to negative from stable and affirmed
their investment-grade ratings. S&P currently rates ING Groep
and Achmea at A, and ING Bank at A-plus.
The firm also placed its ratings on Bank Nederlandse Gemeenten
N.V., KAS Bank N.V. (KA.AE) and Nederlandse Waterschapsbank N.V. on
watch for a possible downgrade while it reviews the impact of
higher economic risks on these companies' ratings. Bank Nederlandse
Gemeenten and Nederlandse Waterschapsbank are currently rated at
S&P's highest level, triple-A, while KAS has a rating of
A-minus.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com