Today, Scope Ratings upgraded ING Bank’s Senior Unsecured Debt rating to AA- with a Stable Outlook from A+ with a Stable Outlook, aligning it with the bank’s existing Issuer Rating of AA-. The agency also assigned first-time A+ ratings, with a Stable Outlook, to newly issued MREL/TLAC-eligible senior unsecured debt issued by ING Group.

These rating actions reflect Scope’s view that senior unsecured debt which can be eligible for TLAC and/or MREL would be rated at least one notch below both the Issuer Rating and the rating of senior unsecured debt not eligible for MREL/TLAC – whether it is issued by a top holding company or the top operating bank of the group. This view has been detailed by Scope in its bank rating methodology (last updated in May 2017).

Specifically, Scope’s methodology states that “the ratings of senior unsecured debt and other unsecured long-term liabilities which are not eligible for MREL and/or TLAC can be placed at the same level as the Issuer Rating for the AAA-BB rating ranges. This would take into account the material level of protection for this debt category provided by MREL and/or TLAC liabilities, which need to absorb all losses before another layer of protection (…) is put to use”.

Legal and regulatory disclosures

Information pursuant to Regulation (EC) No 1060/2009 on credit rating agencies, as amended by Regulations (EU) No. 513/2011 and (EU) No. 462/2013

Responsibility
This report is issued by Scope Ratings AG, Berlin, District Court for Berlin (Charlottenburg) HRB 161306 B, Executive Board: Torsten Hinrichs (CEO), Dr Stefan Bund.
The Lead Analyst is Chiara Romano, Senior Analyst.
Responsible for approving all rating actions: Sam Theodore, Managing Director.

Rating history

• Senior unsecured debt rating for ING Bank NV was first assigned 02.04.2014 and last updated on 31.03.2017
• Senior unsecured debt rating for ING Groep NV was first assigned 05.10.2015 and last updated on 31.03.2017

The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months. A rating change is, however, not automatically ensured.
The ratings were not requested by the issuers (unsolicited rating) and were prepared without participation of the issuers.

Key sources of information for the rating
Website of the rated entity | Annual reports/semi-annual reports of the rated entity | Data provided by external data providers | other public information
Scope Ratings considers the quality of the available information on the evaluated company to be satisfactory. Scope uses information and data that it considers to be accurate and reliable. Scope cannot, however, independently verify the reliability and accuracy of such information and data.

Examination of the rating by the rated entity prior to publication
Prior to publication, the rated entities were given the opportunity to examine the rating and the rating drivers, including the principal grounds on which the credit rating or rating outlook is based. The rated entity was subsequently provided with at least one full working day, to point out any factual errors, or to appeal the rating decision and deliver additional material information. Following that examination, the ratings were not modified.

Methodology
The methodologies applicable for this rating actions “Bank Rating Methodology” (May 2017) is available on www.scoperatings.com. The historical default rates of Scope Ratings can be viewed on the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s default rating, definitions of rating notations and further information on the analysis components of a rating can be found on www.scoperatings.com.

Conditions of use / exclusion of liability
© 2017 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings AG, Scope Analysis, Scope Investor Services GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope cannot, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided “as is” without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or otherwise damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party, as opinions on relative credit risk and not as a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings AG at Lennéstraße 5 D-10785 Berlin.

Rating issued by
Scope Ratings AG, Lennéstrasse 5, 10785 Berlin