S&P downgrades ABN Amro, Rabobank
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WASHINGTON, Nov 16 AFP
November 17 2012, 09:56AM
Standard & Poor's has downgraded Dutch banks ABN AMRO, Rabobank and others citing their exposure to a deeper economic slump in the Netherlands and the recession-hit eurozone.
The ratings on the two large Dutch banks were cut by one notch each, to A from A+ for ABN AMRO and to AA- from AA for Rabobank.
Two other banks, F van Lanschot Bankiers and SNS REAAL, also were cut by one notch and S&P lowered the outlook on ING Bank, ING Group and Achmea Hypotheekbank to negative, while keeping the ratings unchanged.
"In our view, Dutch banks are exposed to increased economic risks as a result of a potentially more protracted downturn in The Netherlands and wider eurozone," S&P said.
It added that the prolonged correction in the Dutch property market and government deficit-cutting measures would continue to hit the Dutch economy, "although we expect the overall impact on the banking sector to be moderate".
S&P was cautious, saying the Dutch economy remains structurally sound and competitive, and that there is only a low likelihood that banks will experience a sharp increase in housing-related losses.
However, it said: "We could see further pressure on our assessment of economic risk in The Netherlands in the event of a more pronounced correction in the eurozone."