ABN AMRO Bank has signed an agreement with Citigroup to sell its US-based residential mortgage brokerage ABN AMRO Mortgage Group.
The transaction is expected to close by the end of Q1 2007.
Standard & Poor’s ratings services has given ABN AMRO a counterparty credit rating of ‘AA-/A-1+’.
Bernd Ackermann, credit analyst at Standard & Poor, says: “The affirmation of the ratings takes into account that the impact of the sale on the group’s strong business, financial, and risk profile is marginal, as it will result in a small book gain and only modest capital relief for the ABN AMRO group.
He adds: “Key to the ratings on ABN AMRO will be the success of the downsized and integrated global markets and global clients business, the integration of Antonveneta, and the strengthening of non-mortgage-related revenues for the U.S. business.|
Parfeniuk says: “The sale of the mortgage operations should pave the way for more stable operating results.