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RCB Bank rating confirmed by S&P — highest in Cyprus

RCB gets rating confirmation from S&P

S&P Global Ratings in an annual report published on Wednesday confirmed the creditworthiness of RCB Bank at BB- / B with a stable outlook — this is the highest rating currently among Cyprus banks.

A ‘BB-‘ rating shows that the entity is less vulnerable to changes in the external environment. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to its inadequate capacity to meet its financial commitments..

The stable outlook reflects S&P Global’s expectation that, over the next 12 months, RCB Bank will be able to withstand potential stresses from a macroeconomic contraction while preserving its current solvency and its balanced funding profile.

RCB Bank’s strengths, such as strong capitalisation, good asset quality, and adequate profitability throughout the cycle, are among the most important S&P benchmarks.

The rating agency anticipates that RCB Bank’s strong capitalisation will be sufficient to absorb an increase in credit costs due to expected asset quality deterioration in 2020-2021. Under pressure from the pandemic, an increase in non-performing loans (NPEs) is expected at all banks in Cyprus.

The US credit rating agency pointed to the steady growth of domestic business in loans and deposits, the much better return on credit and profits, compared to other domestic players, as well as the Bank’s management team as positive factors for the stability of RCB.

S&P believes that RCB Bank’s corporate governance is adequate and that the internal system for combating money laundering is sound.

“This is another confirmation of the bank’s strong and stable position in Cyprus,” RCB said in a statement.

RCB Bank Ltd was founded in 1995 and is now one of the largest financial institutions in Cyprus and a major EU bank. The Bank offers corporate, investment products as well as retail services to customers from around 50 countries.

It is among the European significant Banks, which are under the direct supervision of the European Central Bank through the SSM mechanism. The Bank operates branches in Nicosia, Limassol, Larnaca, Paphos and Luxembourg.



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