Fitch confirms MoraBanc’s rating

Fitch has issued a further assessment of MoraBanc’s rating, maintaining it at BBB-. In its latest report the rating agency has evaluated the situation and evolution of the Andorran institutions, as well as the current economic context marked by the COVID-19 health emergency.

In its report Fitch emphasises that MoraBanc is in a good position to overcome the impact of the economic effects of the coronavirus with its ratios “intact”, given the bank’s high levels of capitalisation guaranteed by its conservative management philosophy, profitability, recurrent growth and financial flexibility.

Fitch praises MoraBanc’s high degree of solvency, which stood at 23.82% (fully loaded CET1 ratio) at the end of 2019, and good non-performing loan ratio of 3.3%. These indicators, which lie above the averages for European banks, will provide valuable financial flexibility when it comes to addressing the potential upturn in defaults, which Fitch regards as the main risk facing the sector.

MoraBanc chairman Pedro González Grau believes that “maintaining our rating at a moment such as the current one is excellent news and we’re in a good position to overcome the crisis due to our distinctive strengths, namely solvency, recurrent growth, low non-performing loan ratio and investment capacity.”

The institution’s managing director, Lluís Alsina, is satisfied with Fitch’s rating and points to “the bank’s good track record in recent years. We’ve continued to grow and have strengthened our balance sheet, and this will help us to cope with the impact of COVID-19, a situation which Fitch includes in its report, and which highlights ​​the work of the entire team.”

MoraBanc ended the 2019 financial year with recurrent profit growth for the third consecutive year. Profits increased by 4.5%, totalling 25.14 million euros, while assets under management amounted to 7.514 billion euros, a figure up 15% compared with the previous year.