S&P Global Ratings on Jan. 16 assigned long- and short-term issuer credit ratings of BB/B to Alior Bank SA, with a stable outlook on the long-term rating.
Despite being a relatively small bank with a 5% asset share in Poland, S&P said Alior Bank demonstrates sound franchise in consumer finance and commercial lending to small- and medium-sized enterprises. However, the bank's revenues, capitalization and risk profile can be more volatile and vulnerable to changes in operating conditions compared to those of most of its peers, the agency added.
The stable outlook, meanwhile, reflects S&P's expectation that the bank's new management will aim for more moderate organic business growth compared to the strategy in recent years. It also reflects S&P's expectation that Alior Bank will continue to be a moderately strategic unit to PZU SA and will receive parental support if needed.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.