Dutch cooperative bank Rabobank, a major backer of horticultural production and other key players in the fresh produce supply chain, has had its triple-A rating from Standard & Poor's downgraded by two levels to AA.
Although Rabobank remains the highest rated privately owned bank in the world, according to S&P, and the only one to retain an AAA rating (from rival agency Moody's), the severity of the downgrade has taken analysts somewhat by surprise, especially given the institution's reputation over the past few years as a safe port in the financial storm.
The world's other major ratings supplier, Fitch, rates Rabobank as AA+, one level below the top rating.
'The unlisted bank had long prided itself on its triple-A rating,' said a report from Reuters. 'It said in the 2007/08 financial crisis it was not tempted to snap up a bargain if it put the rating at risk, and maintains a conservative capital and liquidity stance.'
The downgrade in Rabobank's rating is expected to mean the group will have to pay more in order to borrow money.
Speaking on Dutch television programme RTL Z, Rabobank's chief financial officer Bert Bruggink sought to downplay the significance of the ratings cut.
'S&P did not say it literally, but they communicated that a bank can no longer have a triple-A rating,' he commented.
'Nothing is risk free. Even the best countries prove not to be risk free. In that respect I think S&P's conclusion is a right one,' Bruggink added.
