OREANDA-NEWS. October 14, 2015. DBRS announced that they have downgraded Rabobank’s Long-Term Deposits & Senior Debt rating to ‘AA’ from ‘AA (high)’ with Trend ‘Negative’. The Short-Term Debt rating will be maintained at ‘R-1 (high)’ but will see a Trend change to ‘Negative’ from ‘Stable’. Since 20 May 2015 Rabobank’s Long-Term Deposits & Senior Debt rating were placed “Under Review Negative” with DBRS. This downgrade of the Long-Term rating and the Trend change with respect to the Short-Term rating are solely the result of the removal of the 1 notch of rating uplift Rabobank had due to implicit government support.

The rating action concluded the reviews of European banks that were initiated on 20 May 2015. The rating actions reflect DBRS’s view that developments in European regulation and legislation mean that there is less certainty about the likelihood of timely systemic support. Overall, DBRS views this as negative for European banks’ senior bondholders.