OSLO: S&P Global Ratings has published an update on the rating of Bank Norwegian. S&P Global Ratings revises the outlook from “Negative” to “Stable”, while affirming the long-term rating of “BBB” and a short-term rating of “A-2”.
S&P Global Ratings highlights that “Bank Norwegian’s earnings performance in the first nine months of 2020 demonstrate resilience amid COVID-19 fallout, and its capital and provisions are strong enough to absorb losses even in a more adverse scenario. The stable outlook reflects our view the bank will defend its high risk-adjusted profitability and maintain strong capital buffers through 2022.”
“The stable outlook reflects our expectation that Bank Norwegian will maintain a robust risk-adjusted capitalization and adequate buffers as it its loan book grows at a more moderate pace over the next two years. We believe that the expected recovery of Nordic economies from COVID-19 fallout will support Bank Norwegian’s profitable business generation and that its asset quality won’t suffer enduring repercussions,” S&P noted.
“This could lead us to incorporate a positive adjustment notch into our assessment of Bank Norwegian’s stand-alone credit profile, specifically, in our business or risk position assessment. We also believe that the bank won’t compromise its strong operating efficiency and risk-adjusted profitability while it expands into new markets starting from late 2021”.
Bank Norwegian AS is a Norwegian internet bank which provides loans, credit cards and savings accounts to consumers. The company was founded in November 2007 and is headquartered at Fornebu, Norway.