Axesor Rating, which has given the Official Credit Institute (ICO) an unsolicited rating of ‘A’ with a trend ‘under observation’, considers that the institution has sufficient solvency and liquidity levels to cope with the impact of the COVID pandemic -19 in the medium term.
Its adequate levels of liquidity and solvency are emphasized, with more than enough liquid assets to cover the liquidity gap that may occur in the medium term, an appropriate diversification of financing sources and a level of capitalization that closed last year at 5,373 million euros, an amount that represents 16.8% of assets, with a large level 1 capital ratio that quintuples regulatory requirements.
In addition, the buffer of eligible assets pledged in the ECB policy should be taken into account, the reduction of which would make it possible for lPublic entity obtained a potential liquidity of 1,234 million euros in the very short term, reports Europa Press.
From the rating agency, they indicate that the public entity has a more than adequate quality of asset, which obtained 34,721 million euros in the first four months of the year.
With an ROE of 2.04%, low levels of profitability are a weak point. However, they are consistent with its countercyclical activity to promote credit in times of scarcity such as the current one, explains the entity.
The Prime Minister, Pedro Sánchez, has recently announced a new ICO line of 50,000 million euros to rescue profitable businesses, which will be approved this Friday by an extraordinary Council of Ministers.
Sánchez has announced a new ICO line of 50,000 million for small businesses and the self-employed linked to solvency, after stressing that 500,000 operations (10,000 operations per day) have been registered through the ICO guarantee line of 100,000 million euros approved on March 17 by the Executive to face the impact of Covid.
On June 16, the Government activated the fifth and last tranche of public guarantees for loans to companies for an amount of 15,500 million euros, which completes the program endowed with 100,000 million euros enabled to maintain the productive fabric.
The Government also reallocated 28,000 million euros in guarantees through the ICO that had not been consumed, intended mainly for the self-employed and SMEs, after the deadline of June 30.
Of the total amount of 100,000 million euros approved by the Executive, that part had not been consigned and this remainder has already been reassigned among the entities based on the consumption made by them in each section, in order to continue injecting liquidity into the business fabric .