...Low Risk Appetite: Banco Cooperativo Espa±ol S.A.'s (BCE) Long-Term Issuer Default Rating (IDR) is driven by its standalone creditworthiness, as captured in its Viability Rating (VR). The VR reflects BCE's strategic importance as the central treasurer for the members of the Asociacion Espanola de Cajas Rurales (AECR; the Spanish rural cooperatives association), its fairly low risk appetite, adequate risk management and comfortable liquidity position. The VR also factors in the bank's relatively high leverage and modest profitability. AECR Members' Central Treasurer: The AECR comprises 41 Spanish credit cooperatives, which had EUR57bn total assets and roughly 3.1% deposit market share in Spain at end-2014. BCE's main function is to channel liquidity to and from AECR members, which makes the structure and size of its balance sheet highly dependent on their liquidity and financing needs. We expect AECR members' credit profiles to remain broadly stable and the BCE to remain of strategic importance...
