Bulletin: AXA Bank Europe Ratings Unchanged On Results Of ECB Review

PARIS (Standard&Poor's) Oct. 30, 2014--Standard&Poor's Ratings Services said today that its ratings and outlook on AXA Bank Europe S.A. (ABE; A/Positive/A-1) are not affected by the results of the European Central Bank's (ECB's) comprehensive assessment of Europe's largest banks, including the European Banking Authority's (EBA's) EU-wide stress test, announced on Oct. 26, 2014. The outcome of the comprehensive assessment revealed that ABE would record a potential capital shortfall of €200 million under the adverse scenario of the EBA's stress test. However, when taking into account the €225 million in Tier 1 capital received in September 2014 from its parent, global multiline insurer AXA group, ABE would be able to meet the required capital thresholds. In addition,

...PARIS (Standard & Poor's) Oct. 30, 2014--Standard & Poor's Ratings Services said today that its ratings and outlook on AXA Bank Europe S.A. (ABE; A/Positive/A-1) are not affected by the results of the European Central Bank's (ECB's) comprehensive assessment of Europe's largest banks, including the European Banking Authority's (EBA's) EU-wide stress test, announced on Oct. 26, 2014. The outcome of the comprehensive assessment revealed that ABE would record a potential capital shortfall of 200 million under the adverse scenario of the EBA's stress test. However, when taking into account the 225 million in Tier 1 capital received in September 2014 from its parent, global multiline insurer AXA group, ABE would be able to meet the required capital thresholds. In addition, we consider that the stress test penalized ABE by assuming a static balance sheet from Dec. 31, 2013, whereas the bank's portfolios of structured bonds and Hungarian mortgage credit have been in run-off since 2008 and 2011,...

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