Ratings

Fitch Ratings

On September 20, 2019, Fitch Ratings has upgraded PJSC Sovcombank's Long-Term Issuer Default Ratings (IDRs) to 'BB+' from 'BB'. The Outlooks are Stable. The Viability Rating (VR) has been upgraded to 'bb+' from 'bb'. The agency has also assigned SovCom Capital DAC's upcoming issue of US dollar-denominated subordinated Tier 2 bonds an expected long-term rating of 'BB(EXP)'. The upgrade of the IDRs and VR reflects the bank's extended track record of exceptional performance, robust asset quality, strong profitability, solid liquidity and capital buffers, and Fitch's view that the operating environment in Russia has improved, which should benefit the bank's credit profile.

Category
RatingDateForecast
Long-term foreign currency issuer default rating
BB+20.09.2019Stable
Long-term local currency issuer default rating
BB+20.09.2019Stable
Short-term foreign currency issuer default rating
B20.09.2018
Viability rating
BB+20.09.2019
Support rating
520.09.2019
Support rating floor
20.09.2019No floor
Senior unsecured debt
BB+20.09.2019

S&P Ratings

On September 20, 2019, the international rating agency S&P Global Ratings raised to "BB/B" its long- and short-term foreign and local currency ratings on Sovcombank JSC. The outlook is stable. The agency now consider Sovcombank to be a systemically important institution in a Russian context. The stable outlook reflects the opinion that Sovcombank will maintain its current level of capitalization and not increase its risk appetite as it follows its organic and acquisitive expansion strategy.

Category
RatingDateForecast
Issuer credit rating
BB/B20.09.2019Stable
SACP Score
BB−20.09.2019
Basic rating level
BB−20.09.2019
Business position
020.09.2019Adequate
Capitalization and profitability
020.09.2019Moderate
Risk position
020.09.2019Adequate
Funding and liquidity
020.09.2019Medium and adequate
Support for additional ability to absorb losses with subordinated capital
020.09.2019
State support for OSG
020.09.2019
Group support
020.09.2019
Support for systemic value
+120.09.2019

Moody's Ratings

On March 23, 2018, the international rating agency Moody's confirmed the long-term and short-term deposit ratings of Sovcombank in connection with the forthcoming bank deal with Rosevrobank, which was announced on March 13. Agency analysts positively evaluated the deal, stressing that the business models of banks complement each other well. Sovcombank's assets will increase by 30% at the expense of Rosevrobank corporate loans. The funding structure of Sovcombank will be more balanced between retail and corporate deposits, with less dependence on interbank lending.

Category
RatingDateForecast
Long-term debt rating
23.03.2018
Rating for long-term deposits
Ba323.03.2018
Bank deposit rating
Ba323.03.2018
Baseline Credit Rating
Ba323.03.2018
Adjusted baseline credit rating
Ba323.03.2018
Counterparty risk
Ba2/NP23.03.2018

АКРА

On August 9, 2019 The Analytical Credit Rating Agency (ACRA) upgraded the credit rating of Sovcombank to "A+(RU)" with a "stable" outlook due to a change in the market risk assessment, which led to an upgrade in the Bank’s SCA to "a". The Bank’s systemic importance for the Russian banking system is reflected in one additional notch up to its SCA.

Category
RatingDateForecast
Credit rating
A+09.08.2019Stable
Business Profile First Stage
BBB09.08.2019
Business Profile Second Stage
BBB09.08.2019
Capital adequacy
+209.08.2019Strong
Risk profile
009.08.2019Adequate
Funding and liquidity
009.08.2019Adequate
SCA
A09.08.2019
Systemic adjustments
009.08.2019
Individual adjustments
009.08.2019
Systemic importance
+109.08.2019
Group
009.08.2019
State
009.08.2019

RAEX

On May 24, 2019, RAEX Rating Agency (Expert RA) confirmed Sovcombank's credit rating at the level of "ruА" with a "stable" outlook. The rating is positively influenced by moderately high probability of financial and administrative support from the Federal authorities in case of emergency due to the scale of business and the structure of deposits of the Bank.

Category
RatingDateForecast
Credit rating
ruA24.05.2019Stable

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