Standard & Poor’s raised EAA’s long-term Issuer Credit Rating
Duesseldorf, 16.09.2019. S&P Global Ratings (S&P) has raised its long-term issuer credit rating (ICR) for EAA to AA from AA-. This follows a similar action on the State of North Rhine-Westphalia, released by S&P on September 13th, 2019. The short-term ICR of EAA was affirmed at A-1+. The recent positive action on the long-term ICR has been based on S&P’s belief that a major call on guarantees for EAA has become less likely than before.
S&P kept an positive outlook on EAA since March 19th, 2018, respectively on NRW since March 16th, 2018. S&P equalizes the rating of EAA with the rating of NRW as it regards NRW as liable for EAA's losses and expects that NRW would provide timely and sufficient extraordinary support to EAA in an event of financial distress. The positive outlook for NRW was based on S&P’s anticipation that contingent liabilities in connection with EAA could reduce more quickly than previously expected, next to S&P’s acknowledgement of the positive budgetary development of NRW.
EAA is a frequent issuer of benchmark-sized bonds in tenors of up to three years. EAA’s annual funding amounts to an equivalent of EUR 3bn with bonds denominated in USD or EUR.