S&P upgrades De Volksbank

S&P said it upgraded its ratings for De Volksbank NV (DVB) to A from A-.

“We no longer see DVB's preferred strategy of the sale of the business as implying additional risks to senior creditors in a resolution scenario versus an open bank bail-in. Although the bank could contemplate a partial sale in a resolution scenario, we consider a sale of the whole business as more likely. This reflects the noncomplex nature of the business itself–focused on mortgages–and the existence of players, particularly domestic banking groups, that would be willing and capable of completing a deal,” S&P said in a press release.

The agency said it does not see the increasingly challenging macroeconomic environment substantially hurting the bank’s asset quality.

The outlook is stable.

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