...Treasurer for AECR Members: The ratings of Banco Cooperativo Espanol S.A. (BCE) reflect its strategic importance as the central treasurer for the 29 members of the Spanish rural credit cooperative group, Asociacion Espanola de Cajas Rurales (AECR). The group provides BCE with a stable, albeit low-margin, business but has at times resulted in high leverage. BCE's ratings also factor in its moderate risk appetite, adequate risk management and a stable liquidity profile. MIP Underpins BCE's Role: BCE and AECR members signed an agreement in December 2017 to create a cooperative institutional protection mechanism, known as MIP in Spanish, to strengthen AECR member's existing cross-support mechanism. Fitch Ratings believes this strengthens the relationship between AECR members and underpins BCE's strategic role as the group's central treasurer. BCE's main function is to channel liquidity to and from AECR members. Improved Leverage Metric: BCE's risk-weighted capital ratios are robust with a Fitch...
