S&P Lowers ING Outlook, Downgrades Ratings of Dutch Banks

   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 [e-mail]