Fitch puts Rabobank on watch

Fitch Ratings said it placed Rabobank Group's long-term issuer default rating of AA+ and viability rating of AA+ on Rating Watch negative.

The agency also said it placed Rabobank's central organization, Cooperatieve Centrale Raiffeisen-Boerenleenbank BA's long-term issuer default rating of AA+ on Rating Watch negative.

The watch considers a view that many banks globally, and European banks in particular, continue to face a number of material market and fundamental challenges, Fitch said.

Rabobank continues to be one of the most creditworthy banks in the agency's portfolio and has the highest viability rating of any commercial bank rated by Fitch, the agency said.

However, the constraint imposed by the bank's mutuality on the amount and type of capital it can raise in times of stress is a concern, Fitch said.

And the bank also has a high level of wholesale funding, which can be affected by broader market concerns, the agency added.

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