KBRA assigns its long-term issuer rating of AAA to the European Investment Fund (EIF). KBRA also assigns its short-term issuer rating of K1+ to the supranational. The Outlook on the long-term rating is Stable.
KBRA's credit ratings for the EIF reflect strong shareholder ability and willingness to support the institution, reflective of its ownership and relevance to the European Union's policy objectives. KBRA notes EIF's vital role in providing finance to small- and medium-sized enterprises, including through the InvestEU programme, REPowerEU plan, and European Tech Champions Initiative. These considerations are also important to the EIF's mandate. The institution's capital position is strong, reinforced by the recent capital injection in 2021 to support the post-pandemic expansion of its business activities. EIF's capital position also benefits from internal capital generation and a dividend distribution rate cap. EIF's long track record of limited guarantee calls and the high average credit quality of guarantees support KBRA's strong evaluation of asset quality. Structural credit enhancements on private equity investments and EIF's exposure to senior tranches are also key for asset performance. EIF's liquidity position is strong, benefitting from a large portfolio of liquid assets on its balance sheet and predictable cash flow needs, and also considers that EIF has no debt outstanding. Prudent governance across all facets of operations, including risk management and operating practices, supports the credit ratings.
The ratings were solicited by a third party. The rated entity or related third party did participate in the rating process and KBRA did not have access to management and internal documents.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Sovereigns: Supranationals Global Rating Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA's Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA Europe
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
Doc ID: 1006343
View source version on businesswire.com: https://www.businesswire.com/news/home/20241011363464/en/
Contacts:
Analytical Contacts
Joanna Drobnik, Managing Director (Lead Analyst)
+353 1 588 1250
asia.drobnik@kbra.com
Ken Egan, Senior Director
+353 1 588 1275
ken.egan@kbra.com
Joan Feldbaum-Vidra, Senior Managing Director (Rating Committee Chair)
+1 646-731-2362
joan.feldbaumvidra@kbra.com
Business Development Contact
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
