Research Update: Austria-Based Raiffeisen Bank International Outlook Revised To Negative On Deepening COVID-19 Risks; Ratings Affirmed

Despite governments' measures to contain the COVID-19 pandemic, European economies, including Austria and others that Raiffeisen Banking Group (RBG) is exposed to, face an unprecedented challenge. Under our base case of an economic recovery starting in third-quarter 2020, through year-end 2020 and into 2021, we expect RBG's earnings, asset quality, and capitalization to face greater pressure than previously envisaged but remain resilient. We are revising the outlook to negative from stable on RBG's core subsidiary Raiffeisen Bank International AG (RBI) and affirming the 'A-/A-2' ratings. The negative outlook on RBI reflects our view that RBG faces several downside risks in the coming 12-24 months, including weakened operating conditions amid the COVID-19 pandemic. On April 29, 2020, S&P Global Ratings revised

...- Despite governments' measures to contain the COVID-19 pandemic, European economies, including Austria and others that Raiffeisen Banking Group (RBG) is exposed to, face an unprecedented challenge. - Under our base case of an economic recovery starting in third-quarter 2020, through year-end 2020 and into 2021, we expect RBG's earnings, asset quality, and capitalization to face greater pressure than previously envisaged but remain resilient. - We are revising the outlook to negative from stable on RBG's core subsidiary Raiffeisen Bank International AG (RBI) and affirming the 'A-/A-2' ratings. - The negative outlook on RBI reflects our view that RBG faces several downside risks in the coming 12-24 months, including weakened operating conditions amid the COVID-19 pandemic....

Research Update