The AAA(RU) credit rating of Sberbank (hereinafter, Sberbank, or the Bank) reflects its very high systemic importance for the Russian economy and the high degree of support from the majority shareholder. The Bank’s standalone creditworthiness is very high compared to other Russian credit institutions, which is supported by its market positions, strong capital position, adequate risk profile, and adequate liquidity and funding position.

The credit ratings of the senior unsecured bonds have been affirmed at AAA(RU). The credit ratings of the subordinated bonds, which are Tier 2 capital instruments, have been affirmed at AA-(RU).

Sberbank is Russia’s largest bank that holds about one third of the total assets in the banking system. Sberbank occupies leading positions in most domestic banking business segments in Russia.

KEY ASSESSMENT FACTORS

Very high degree of support from the majority shareholder. Sberbank is a key player in the market with strategic importance for the Russian authorities. The very high systemic importance of the Bank is reflected in the consequences of its potential default, which could lead to a systemic banking crisis and result in significant problems across the entire economy. Sberbank is a dominant lender for retail and corporate clients, it holds a significant portion of retail deposits, and it is a critical infrastructural entity acting as a nationwide settlement system. Therefore, its default could lead to an acute socioeconomic crisis and recession. In addition, thanks to its unique market position, the Bank is a de facto benchmark institution in terms of interest rates.

Very strong business profile. The Bank has a stable franchise and enjoys the largest market shares in most banking business segments. Sberbank’s key competitive advantages include a substantial amount of relatively low cost retail deposits, which allows the Bank to earn high net interest income. In addition, the Bank has wide customer base coverage in terms of geography and industry, which provides for diverse operating income, including interest income from loans to corporates and individuals, significant investments in the most advanced customer financial and non-financial services.

Strong capital adequacy assessment. In recent years, Sberbank has recorded a rather stable growth of profits. The average capital generation ratio (ACGR) is high. Capital adequacy metrics are strong, which allows the Bank to pay dividends and comply with capital adequacy ratio buffers. The Bank’s operational efficiency indicators exceed those of peer banks, which is positive for the rating assessment. The three-year average CTI and NIM have remained almost unchanged. ACRA’s stress test shows that within the 12 to 18-month horizon, the Bank is able to withstand a rather high additional increase in the cost of risk, without the Tier 1 ratio declining below 6%.

The adequate risk profile assessment is based on a sustainably moderate level of non-performing loans and a low concentration of the loan portfolio. As of 2022-end, the share of loans granted to companies operating in high-risk industries was less than the threshold value of 100% of Tier 1 capital set by ACRA's methodology. The level of accepted market risk is assessed as not high. The Bank’s risk management system is mature and sophisticated on both the operating and strategic levels.

The Bank’s adequate funding and liquidity position is underpinned by the sufficient coverage of potential outflows with highly liquid assets. If case of need, the Bank has access to a considerable volume of regulatory (for repurchase transactions and collateralized refinancing), market and other types of refinancing. Sberbank’s funding profile is assessed as well-balanced and is characterized by moderate concentration on both the largest lenders and funding sources. ACRA does not expect any significant changes in the funding structure within the 12 to 18-month horizon.

Key assumptions

  • Maintaining exceptional market positions.

  • Tier-1 CAR above 12% within the 12 to 18-month horizon.

POTENTIAL OUTLOOK OR RATING CHANGE FACTORS

The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.

A negative rating action may be prompted by:

  • Loss of shareholder control and downgrade of the standalone creditworthiness assessment (SCA).

RATING COMPONENTS

SCA: aaa.

Support: on par with the Russian Federation.

ISSUE RATINGS

Sberbank, series 002Р-SBER44 (RU000A1069P3), maturity date: May 27, 2026, outstanding issue volume: RUB 68 bln — AAA(RU).

Sberbank, series 001Р-SBER36 (RU000A103YV4), maturity date: May 27, 2026, outstanding issue volume: RUB 12 bln — AAA(RU).

Sberbank, series 001Р-SBER42 (RU000A105SD9), maturity date: Mar. 02, 2025, outstanding issue volume: RUB 62 bln — AAA(RU).

Sberbank, series 001Р-SBER33 (RU000A103WV8), maturity date: Nov. 15, 2024, outstanding issue volume: RUB 82 bln — AAA(RU).

Sberbank, series 001Р-SBER40 (RU000A105666), maturity date: Nov. 15, 2024, outstanding issue volume: RUB 10 bln — AAA(RU).

Sberbank, series 001Р-SBER20 (RU000A102FQ5), maturity date: Nov. 13, 2025, outstanding issue volume: RUB 7 bln — AAA(RU).

Sberbank, series 001Р-SBER39 (RU000A1040Y6), maturity date: Nov. 13, 2025, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBER23 (RU000A102RR8), maturity date: Nov. 08, 2024, outstanding issue volume: RUB 5 bln — AAA(RU).

Sberbank, series 001Р-SBER38 (RU000A1040J7), maturity date: Nov. 07, 2025, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBERD1 (RU000A103KG4), maturity date: Feb. 28, 2025, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBER29 (RU000A103G42), maturity date: Jul. 31, 2026, outstanding issue volume: RUB 4 bln — AAA(RU).

Sberbank, series 001Р-SBER30 (RU000A103G59), maturity date: Jul. 31, 2026, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBER32 (RU000A103G75), maturity date: Aug. 04, 2023, outstanding issue volume: RUB 30 bln — AAA(RU).

Sberbank, series 001Р-SBER34 (RU000A103H66), maturity date: Jul. 31, 2026, outstanding issue volume: RUB 5 bln — AAA(RU).

Sberbank, series 001Р-SBER19 (RU000A102CU4), maturity date: Nov. 17, 2023, outstanding issue volume: RUB 18 bln — AAA(RU).

Sberbank, series 001Р-SBER17 (RU000A1025U5), maturity date: Oct. 29, 2023, outstanding issue volume: RUB 40 bln — AAA(RU).

Sberbank, series 001Р-SBER16 (RU000A101QW2), maturity date: May 31, 2024, outstanding issue volume: RUB 20 bln — AAA(RU).

Sberbank, series 001Р-SBER25 (RU000A102YG7), maturity date: Apr. 09, 2026, outstanding issue volume: RUB 18 bln — AAA(RU).

Sberbank, series 001Р-SBER22 (RU000A102RQ0), maturity date: Jun. 19, 2023, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBER24 (RU000A102RS6), maturity date: Oct. 06, 2023, outstanding issue volume: RUB 41 bln — AAA(RU).

Sberbank, series 001Р-SBER26 (RU000A102YH5), maturity date: Apr. 09, 2026, outstanding issue volume: RUB 27 bln — AAA(RU).

Sberbank, series 001Р-SBER27 (RU000A103661), maturity date: Jun. 15, 2026, outstanding issue volume: RUB 7 bln — AAA(RU).

Sberbank, series 001Р-SBER28 (RU000A1038U8), maturity date: Jun. 15, 2026, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-50R (RU000A0ZZXS2), maturity date: Mar. 07, 2024, outstanding issue volume: RUB 15 bln — AAA(RU).

Sberbank, series 001Р-SBER15 (RU000A101C89), maturity date: Jan. 22, 2024, outstanding issue volume: RUB 35 bln — AAA(RU).

Sberbank, series 002Р-01 (RU000A103YM3), maturity date: Nov. 10, 2023, outstanding issue volume: RUB 25 bln — AAA(RU).

Credit rating rationale. The above listed issues represent senior unsecured debt of Sberbank. Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu to other existing and future unsecured and unsubordinated debt obligations of the Bank. According to ACRA’s methodology, the credit ratings of the issues are equivalent to that of Sberbank, i.e. AAA(RU).

Sberbank, series 002СУБ-02R (RU000A102HC1), maturity date: Mar. 11, 2031, outstanding issue volume: RUB 56 bln — AA-(RU).

Sberbank, series 002СУБ-03R (RU000A103Q24), maturity date: Nov. 14, 2031, outstanding issue volume: RUB 7.61 bln — AA-(RU).

Credit rating rationale. The above listed issues are debt instruments of Sberbank subordinated to preferred unsecured lenders. According to ACRA’s methodology, the credit rating of this issue type is set at three notches below the credit rating of Sberbank, which is AAA(RU).

Regulatory disclosure

The credit ratings have been assigned to Sberbank and to bonds (ISIN RU000A102FQ5, RU000A1040Y6, RU000A102RR8, RU000A1040J7, RU000A103KG4, RU000A103G42, RU000A103G59, RU000A103G75, RU000A103H66, RU000A0ZZXS2, RU000A101C89, RU000A101QW2, RU000A102YG7, RU000A1025U5, RU000A102CU4, RU000A102RQ0, RU000A102RS6, RU000A102YH5, RU000A103661, RU000A1038U8, RU000A103YM3, RU000A102HC1, RU000A103Q24, RU000A1069P3, RU000A103YV4, RU000A105SD9, RU000A103WV8, RU000A105666) issued by Sberbank under the national scale for the Russian Federation based on the Methodology for Credit Ratings Assignment to Banks and Bank Groups under the National Scale for the Russian Federation, the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities, and the Methodology for Analyzing Rated Entities Associated with a State or a Group. The Methodology for Assigning Credit Ratings to Financial Instruments on the National Scale for the Russian Federation was also applied to assign the credit ratings to the above issues.

The credit rating of Sberbank was published for the first time on March 20, 2017. The credit ratings of the bonds RU000A0ZZXS2, RU000A101C89, RU000A101QW2, RU000A1025U5, RU000A102CU4, RU000A102HC1, RU000A102RS6, RU000A102YG7, RU000A102YH5, RU000A103661, RU000A1038U8, RU000A102RQ0, RU000A103G42, RU000A103G59, RU000A103G75, RU000A103H66, RU000A103KG4, RU000A102RR8, RU000A1040J7, RU000A103YM3, RU000A102FQ5, RU000A1040Y6, RU000A103Q24, RU000A103WV8, RU000A105666, RU000A105SD9, RU000A1069P3, and RU000A103YV4 were published for the first time on December 12, 2018, January 24, 2020, June 05, 2020, October 02, 2020, November 20, 2020, February 16, 2021, April 09, 2021, April 15, 2021, April 15, 2021, June 21, 2021, June 21, 2021, June 21, 2021, August 06, 2021, August 06, 2021, August 06, 2021, August 06, 2021, September 03, 2021, November 12, 2021, November 12, 2021, November 12, 2021, November 18, 2021, November 18, 2021, March 30, 2022, November 18, 2022, November 18, 2022, February 03, 2023, May 31, 2023, and May 31, 2023, respectively. The credit rating of Sberbank and its outlook as well as the credit ratings of the above bonds are expected to be revised within one year following the publication date of this press release.

The assigned credit ratings are based on the data provided by Sberbank, information from publicly available sources, as well as ACRA’s own databases. The rating analysis was performed using consolidated IFRS financial statements of Sberbank and financial statements of Sberbank composed in compliance with Bank of Russia Ordinance No. 4927-U, dated October 8, 2018. The credit ratings are solicited, and Sberbank participated in their assignment.

In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA's opinion, appropriate and sufficient to apply the methodologies.

ACRA provided additional services to Sberbank. No conflicts of interest were identified in the course of credit rating assignment.

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