S&P cuts Eurofima

S&P said it downgraded Eurofima and its senior unsecured notes to AA from AA+.

“However, unlike other multilateral institutions (MLIs), after the 2008 financial crisis shareholders opted for a deleveraging strategy of stopping financing to its weaker rated members instead of considering a capital injection into Eurofima. Subsequently, the shareholders passed amendments to Eurofima’s statutes that included the gradual removal of the subsidiary shareholder guarantee (SSG), which has been a unique feature of Eurofima. More recently, in 2019, members decided to start distributing dividends after having foregone payouts since 2009,” the agency said in a press release.

The outlook is stable.

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