The successful integration of HSBC Malta by CrediaBank could help lead to the latter getting a ratings upgrade, Fitch has said.
Fitch has assigned CrediaBank, which is in the process of acquiring HSBC Malta, a long-term rating of BB with a positive outlook, while its long-term deposit rating stands at BB+, one notch below investment grade.
“The rating agency assigns a positive outlook when there is a high likelihood of an upgrade in the near term,” CrediaBank said in a statement. “Particularly noteworthy is that the deposit rating already stands at BB+, just one notch below investment grade, while the bank’s overall rating carries a positive outlook,” the bank said.
In terms of factors that could, individually or collectively, lead to positive rating upgrade, Fitch
said that “an upgrade would require a strengthening of the bank's business profile, including the successful integration of HSBC Malta and continued healthy growth and diversification in Greece,” it said, also mentioning other factors.
Equally, Fitch said that it could revise the outlook to stable if CrediaBank does not perform in line with its expectations and fails to successfully execute the acquisition of HSBC Malta, among other things.
Commenting on the rating it just gave CrediaBank, Fitch said that its positive outlook reflects its expectation that earnings generation in Greece will continue to improve as business volumes expand after the completion of an asset quality clean-up. “We also expect that the bank's business profile will materially strengthen following the acquisition of HSBC Bank Malta plc. while execution risks related to the acquisition will be managed adequately.”
Outlining some of the key highlights of Fitch’s assessment, CrediaBank said that the rating reflects the improvement in the bank’s financial position following the completion of its asset quality clean-up, stronger profitability and an adequate capital position after the recent capital increase.
It also said that the positive outlook reflects the expectation that earnings generation in Greece will continue to improve as business volumes grow. “Fitch also expects a significant strengthening of the bank’s business profile following the acquisition of HSBC Malta and considers the transaction’s execution risks to be adequately manageable. Asset quality is also expected to remain broadly stable,” it said.
The acquisition of HSBC Malta is pivotal to CrediaBank’s medium-term credit profile, CrediaBank said. “According to Fitch, the transaction is expected to significantly increase the Group’s scale, enhance geographic diversification, support earnings generation and improve its funding and liquidity profile, supported by HSBC Malta’s ample liquidity and stronger deposit mix. Fitch also considers the transaction’s execution risks to be adequately manageable.”
CrediaBank said that operating profit as a proportion of risk-weighted assets stood at 1.2 per cent in the first half of 2026, “with the agency forecasting a further increase to 3 per cent in 2027 and 3.5 per cent in 2028, supported by business growth and the contribution of the HSBC Malta and Europe Holdings acquisitions. Fitch also expects operating efficiency to improve through greater scale and acquisition synergies.”
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