S&P shifts Sovcombank view to positive

S&P said it revised its outlook on Sovcombank PJSC to positive from stable and affirmed its BB issuer rating.

“We believe Sovcombank’s business model will allow the bank to continue enjoying stronger than average profitability in the domestic market. In addition, we believe the successful integration of newly acquired businesses and assets will support profitability. The bank’s performance was strong throughout 2020, despite pandemic-related stress, and was broadly comparable with that of higher-rated peers, such as Alfa-Bank and Raiffeisen Bank,” the agency said in a press release.

The outlook S&P said indicates it could upgrade Sovcombank if the bank displays sustainable and profitable growth, particularly in buy-now-pay-later cards, while maintaining higher-than-average earnings capacity and robust asset quality.

Sovcombank has reportedly signed agreements with almost 25% of retail stores, including many large chains, making it one of the market leaders in the field, the agency said.

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