Research Update: Aegean Baltic Bank S.A. 'B' Ratings Affirmed; Outlook Remains Stable Despite COVID-19 Headwinds

We expect the global recession and depressed trade volumes to affect asset quality, increase credit provisions, and reduce profitability for Aegean Baltic Bank S.A. (ABB). However, ABB's focus and expertise in the shipping industry, with a selective approach, will allow it to report positive results and preserve its capital and risk profile through the downturn, in our view. As a result, we are affirming our 'B/B' long- and short-term issuer credit ratings on ABB. The stable outlook reflects our expectation that the expected increase of loan delinquencies and credit provisions will be manageable at the current rating level and risk-adjusted capitalization and the funding base will prove resilient over the next 12 months. On May 12, 2020, S&P Global Ratings

...- We expect the global recession and depressed trade volumes to affect asset quality, increase credit provisions, and reduce profitability for Aegean Baltic Bank S.A. (ABB). - However, ABB's focus and expertise in the shipping industry, with a selective approach, will allow it to report positive results and preserve its capital and risk profile through the downturn, in our view. - As a result, we are affirming our 'B/B' long- and short-term issuer credit ratings on ABB. - The stable outlook reflects our expectation that the expected increase of loan delinquencies and credit provisions will be manageable at the current rating level and risk-adjusted capitalization and the funding base will prove resilient over the next 12 months....

Research Update