Research Update: Belfius Bank SA/NV 'A/A-1' Ratings Affirmed Despite Lower Forecast ALAC Buffer; Outlook Stable

We forecast that Belfius Bank SA/NV's (Belfius') additional loss-absorbing capacity (ALAC) ratio will decline to slightly above our 3% threshold by year-end 2026 due to increased risk weighted assets (RWAs) and an expected lower stock of subordinated debt. However, the ALAC buffer will remain sufficient to continue supporting senior debt holders in a resolution scenario. Belfius' stand-alone creditworthiness, notably underpinned by its strong capitalization, will also be unchanged. We therefore affirmed our 'A/A-1' issuer credit ratings on Belfius. The outlook remains stable, reflecting our expectation that Belfius will deliver on its strategic plan and its creditworthiness will remain robust over the next two years. On Oct. 30, 2024, S&P Global Ratings affirmed its 'A/A-1' long- and short-term issuer credit ratings

...Issuer Credit Rating A/Stable/A-1 SACP a- Anchor a- Business position Adequate (0) Capital and earnings Strong (+1) Risk position Moderate (-1) Funding and liquidity Adequate and adequate (0) Comparable ratings analysis 0 Support +1 ALAC support +1 GRE support 0 Group support 0 Sovereign support 0 Additional factors 0...

Research Update