...Treasurer for AECR Members: Banco Cooperativo Espa±ol, S.A.'s (BCE) ratings reflect the strategic importance of the bank as treasurer for the members of the Spanish rural credit cooperative association (Asociacion Espanola de Cajas Rurales; AECR), which provides the bank with a stable, albeit low-margin, business, but which results in a fairly high leverage. The ratings also factor in BCE's moderate risk appetite, adequate risk management and stable liquidity profile. Channelling Liquidity Main Function: Channelling liquidity to and from AECR members is BCE's main function. The structure and size of the bank's balance sheet depends on the liquidity and financing needs of AECR members as a result. Fitch Ratings expects BCE's role within the AECR to remain strategic. At end-June 2017, the AECR consisted of 27 members with an aggregate equity of about EUR5.3 billion. Treasury Agreement Mitigates Risks: BCE managed about EUR5.7 billion at end-June 2017 (41% of total assets) on behalf of the...
