After a substantial capital injection from the parent in 2019, Greensill Bank AG (“Greensill Bank”) has successfully implemented its business plan by growing its balance sheet and investing heavily in systems and staffing. Profitability and capitalisation have developed in line with our expectations.

The ratings reflect the changed global operating environment for parent company Greensill Capital Pty (Greensill) due to the sharp decline in global growth triggered by the Covid-19 induced recession.

While outright credit risk tends to be well covered by credit insurance, we expect the negative economic outlook to result in lower business growth and rising insurance costs, which will have a negative impact on profitability. Our Negative Outlook reflects our view that the difficult operating environment will persist for some time.

The report can be accessed here.

This does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.