SBS Bank’s Outlook revised to 'Positive’ from 'Stable'

SBS Bank’s Outlook revised to 'Positive’ from 'Stable' by Fitch Ratings.

Fitch Ratings has affirmed SBS Bank’s BBB credit rating and revised the outlook to "positive" from "stable" based on the Bank’s recently adjusted strategic approach and opportunity to grow its membership base in a targeted manner.

The affirmation of the Long-Term and Short-Term Issuer Default Ratings (IDR), Viability Ratings (VR) and senior debt rating, reflects Fitch’s view that SBS Bank is likely to continue to perform solidly over the next 12 to 24 months.

SBS Bank CEO Wayne Evans said the Positive Outlook was affirmation of the Bank’s strategic direction.

“This decision is great news for the Bank and our members. It affirms and supports the robust strategy we have worked hard to develop and put into place to position our business for future sustained growth.”

Fitch’s Rating Action Commentary stated the change in strategy had already shown early signs of performance improvements and membership growth. It was expected that the greatest benefits to the Bank’s competitive position would emerge over the next 18-24 months. A conservative risk appetite, improving asset quality and earnings, and sound capital ratios, offset by a modest domestic franchise and limited pricing power also contributed to the improvement in SBS’ Outlook.

ENDS

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