Fitch Affirms AEGON Bank at 'A-'/Stable
A full list of rating actions is available at the end of this rating action commentary.
KEY RATING DRIVERS
AEGON Bank's IDRs and Support Rating are driven by potential support from its ultimate 100% owner, AEGON NV (AEGON, A/Stable). Fitch's view is driven by AEGON Bank's role within the group, which complements AEGON's insurance activities in the Netherlands, the bank's deep integration with the parent, common branding and reputational risks for AEGON in case of subsidiary's default. The bank's small size means its contribution to, and importance for, AEGON's overall franchise is limited, which results in the one-notch difference between the parent's and subsidiary's ratings.
AEGON Bank's Short-term IDR of 'F2' is the lower of the two options mapping to the 'A-' Long-term IDR. This is driven by Fitch's view that given its parent is not a bank, liquidity fungibility within the group could be somewhat constrained and more dependent on the bank's liquidity management.
AEGON Bank's ratings are likely to move in tandem with AEGON's ratings. AEGON Bank's ratings are also sensitive to changes in Fitch's view of the role of the bank in the group.
The rating actions are as follows:
Long-term IDR affirmed at 'A-'; Outlook Stable
Short-term IDR affirmed at 'F2'
Support Rating affirmed at '1'