TEXT-S&P affirms Bank Vontobel at 'A+/A-1'

Overview
-- We have observed a trend of rising residential real estate prices in
Switzerland.
-- Following a review of the Swiss banking sector, we still regard Bank
Vontobel AG and Vontobel Holding AG as having low sensitivity to imbalances in
the Swiss housing market.
-- We are affirming our 'A+/A-1' ratings on Bank Vontobel and our 'A/A-1'
ratings on Vontobel Holding.
-- The negative outlook still reflects our belief that the bank will
likely actively participate in market consolidation, weakening its currently
strong capital position. We also anticipate continuous pressure, owing to
likely subdued market activities.

Rating Action
On July 3, 2012, Standard & Poor's Ratings Services affirmed its 'A+'
long-term counterparty credit ratings on Switzerland-based Bank Vontobel AG
and its 'A' long-term counterparty credit ratings on Vontobel Holding AG. The
'A-1' short-term counterparty credit ratings on both entities were affirmed.
The outlook remains negative.

Rationale
The rating affirmations follow our review of the Swiss banking industry. We
have observed an increase of residential property prices in Switzerland over
the past three years, which we believe represent a risk for those Swiss banks
that have mainly domestic operations. If this trend continues, the growing
economic imbalance may lead us to a more negative view of the economic
environment in which Swiss banks operate and to lower our ratings by one notch
(see "Outlook On Nine Swiss Banks To Negative On Exposure To Rising Property
Prices; Ratings On All Swiss Banks Affirmed," published on July 3, 2012).
However, Vontobel's sensitivity to imbalances in the Swiss housing market is,
in our view, low. We therefore don't foresee a deterioration of the group's
stand-alone credit profile as a result.

Our ratings on Vontobel reflect its anchor of 'a', its moderate business
position, strong capital and earnings, adequate risk position, average
funding, and adequate liquidity. The stand-alone credit profile is 'a'. The
ratings also factor in our view of the bank's "moderate" systemic importance
to the Swiss Confederation (unsolicited ratings AAA/Stable/A-1+).

Outlook
The negative outlook still reflects our belief that the bank will likely
actively participate in market consolidation, leading to a weakening of its
currently strong capital position. The outlook also reflects our view that the
bank's revenues will remain under pressure, owing to likely subdued market
activities.

We regard an upgrade as unlikely at this stage, given the group's current
business and financial profiles. However, we might consider a positive rating
action if we saw a significant nominal improvement in Vontobel's market
position and regional diversification in international private banking and, as
a result, a reduction of its reliance on market-sensitive income from its
certificates business.

Ratings Score Snapshot
Issuer Credit Rating A+/Negative/A-1
Bank Holding Company Rating A/Negative/A-1

SACP a
Anchor a
Business Position Moderate (-1)
Capital and Earnings Strong (+1)
Risk Position Adequate (0)
Funding and Liquidity Average and Adequate (0)

Support 0
GRE Support 0
Group Support 0
Sovereign Support +1
Additional Factors 0

Related Criteria And Research
-- Outlook On Nine Swiss Banks To Negative On Exposure To Rising Property
Prices; Ratings On All Swiss Banks Affirmed, July 3, 2012
-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
-- Group Rating Methodology And Assumptions, Nov. 9, 2011
-- Banking Industry Country Risk Assessment Methodology And Assumptions,
Nov. 9, 2011
-- Bank Capital Methodology And Assumptions, Dec. 6, 2010

Ratings List
Ratings Affirmed

Bank Vontobel AG
Counterparty Credit Rating A+/Negative/A-1
Certificate Of Deposit A+/A-1

Vontobel Holding AG
Counterparty Credit Rating A/Negative/A-1

Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left
column.