CAIXA GERAL DE DEPOSITOS SA

EthiFinance Ratings upgrades Caixa Geral de Depósitos from BBB to BBB+ , changing its outlook from positive to stable due to the upgrade of Portugal's sovereign rating to BBB+ with a stable outlook. Caixa Geral de Depósitos, S.A. (hereinafter CGD) is a Portuguese state-owned banking group that holds the largest share of the commercial banking market in Portugal. The entity offers commercial banking, corporate banking, private banking and insurance products and services. CGD's credit rating is supported by its leadership position in Portugal, as well as its remarkable efficiency and its robust capital position, which are above the Portuguese and European average. Moreover, profitability has increased due to a strong interest generation mainly driven by ECB s interest rates hikes, the delinquency ratio has declined and liquidity ratios remain robust. However, the rating is constrained by Portugal's sovereign rating (BBB+/Stable) as its sole shareholder is the Portuguese state and CGD concentrates most of its profits in its domestic market. Additionally, the uncertainty of the economic environment may increase the bank's non-performing loans, impacting on the bank s financial profile.