...Important Role Within Group: Banco Cooperativo Espanol, S.A.'s (BCE) ratings reflect its strategic importance as treasurer for the members of the Spanish rural credit cooperative association (Asociacion Espanola de Cajas Rurales; AECR), which has proved even more important during the pandemic. This provides the bank with a stable, albeit low-margin, business. The ratings also factor in BCE's moderate risk appetite, adequate risk management and stable liquidity profile. Central Treasurer of AECR: BCE is the central treasurer of the entities that are part of the cross-support mechanism constituted between AECR members under an Institutional Protection Scheme (IPS). The latter entails the creation of an ex-ante recovery fund to address liquidity and solvency problems for group members. The members remain independent entities from a regulatory and supervisory standpoint, but benefit from lower regulatory requirements. Treasury Agreement: BCE provides services to AECR members to gain cost and...
