Aegean Baltic Bank S.A.

Solid capitalization. Sound risk management, with conservative underwriting and strong expertise in shipping. High single-name and business concentration stemming from a monoline business model. Operations in the challenging Greek environment. Low efficiency due to lack of economies of scale. The stable outlook on Aegean Baltic Bank S.A. (ABB) reflects the balance between risks over the next 12 months in the shipping industry stemming from the deep global economic shock, and ABB's sound capital position and good financial track record. S&P Global Ratings anticipates that ABB will preserve its solvency, with a risk-adjusted capital (RAC) ratio remaining around 10.5%-11.5% through 2021, and maintain adequate funding and liquidity. Combined with high collateralization of its loan book, this will continue to support the

...Outlook: Stable The stable outlook on Aegean Baltic Bank S.A. (ABB) reflects the balance between risks over the next 12 months in the shipping industry stemming from the deep global economic shock, and ABB's sound capital position and good financial track record. S&P Global Ratings anticipates that ABB will preserve its solvency, with a risk-adjusted capital (RAC) ratio remaining around 10.5%-11.5% through 2021, and maintain adequate funding and liquidity. Combined with high collateralization of its loan book, this will continue to support the rating. However, the bank's high concentration in the highly volatile shipping industry, which is facing lower activity and earnings because of the COVID-19 pandemic, makes it more vulnerable to the downside risks we see in our economic forecasts....

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