Scope Ratings has today changed to Positive from Stable the outlook on ING Bank’s A Issuer Credit Strength Rating (ICSR) and senior unsecured debt ratings. The Stable Outlook on ING Bank’s S-1 short-term ratings was not changed. At the same time, an ISCR of A with a Positive Outlook has been assigned to ING Group.

According to Scope, the group has practically completed the restructuring required by the European Commission for the receipt of state aid during the financial crisis. Except for a residual stake of just over 25% in NN Group, insurance and investment management businesses have been disposed of and state aid was fully repaid at the end of 2014. As the balance sheets of ING Bank and ING Group have converged, Scope Ratings now also assigns the ICSR of A with a Positive Outlook to ING Group.

The rating agency noted that ING Bank has remained profitable despite restructuring, impairments on financial assets and elevated credit costs. At the same time, the bank’s funding profile and capital position have been strengthened. As of 30 June 2015, the bank’s CRD IV fully loaded CET1 and leverage ratios were 11.3% and 3.8%, respectively. At group level, the fully loaded CET ratio was 12.3%. The most recent reduction in the stake of NN Group in September 2015 is expected to benefit the group’s fully loaded CET1 ratio by approximately 30 basis points on a pro-forma basis.

Scope concluded by noting that ING’s A ratings reflect the group’s strong and resilient retail and commercial banking franchise in the Benelux. Further, the group continues to be at the forefront of direct retail banking operations in several important markets, including Germany. With management now focused on executing its “Think Forward” strategy, Scope sees some uncertainties related to the potential risks of ING’s growth strategies, particularly in businesses considered “Growth Markets” such as Turkey, Romania and stakes in Asia. The agency added that a more established track record of successfully operating as a standalone bank would be a positive rating change driver for ING.

The following rating actions were taken:

• Issuer credit-strength rating (ICSR) of A, outlook changed to Positive from Stable (ING Bank).
• Senior unsecured debt ratings of A, outlook changed to Positive from Stable (ING Bank).
• ICSR of A with a Positive Outlook assigned to ING Group.

The Stable Outlook on ING Bank’s S-1 short-term ratings was not changed.