Implicit ownership support from the Grand Duchy of Luxembourg. Leading domestic retail banking franchise. Very strong capitalization. Earnings sensitivity to the low-interest-rate environment and credit-spread risks. Geographic concentration in a wealthy but small domestic market. The Luxembourg economy's vulnerability to Europe-wide measures regarding taxation and banking secrecy. S&P Global Ratings' stable outlook on Banque et Caisse d'Epargne de l'Etat, Luxembourg (BCEE) mirrors that on the Grand Duchy of Luxembourg (AAA/Stable/A-1+). This reflects BCEE's status as a government-related entity (GRE) and our expectation that the bank will keep its integral link with, and very important role for, Luxembourg's government under our rating horizon. The stable outlook also reflects our current view that the implementation of the EU Bank Recovery and Resolution
