BCS Ltd, one of the leading financial services groups in Russia, announced today that the S&P Global Credit forecast for the company has been upgraded to positive from its previous assessment of stable.
S&P also reviewed its ratings for BCS subsidiaries including BCS Prime Brokerage Ltd which saw its long and short-term rating affirmed at ’B+/B’.
The positive outlook reflects expectations that over the next 12-18 months BCS will be able to manage the risks associated with the volatile geopolitical environment and the increasing complexity of its operations while successfully transforming its business with its increased geographical diversification.
S&P noted that BCS has gradually become a more diversified group on the back of its development of prime brokerage activities via its U.K.-based subsidiary and its expansion into the U.S. market. These initiatives have reduced BCS’ exposure to Russian country risk which is considered to be extremely positive by credit analysts.
Alongside the geographical expansion, BCS has also begun to reshape its business initiatives to build on its financial services offerings. One such example is the issuance of structured products has become more reliant on derivatives to manage risks on the balance sheet which requires less wholesale funding, thus improving BCS’ liquidity position.
S&P concluded its outlook by highlighting that ratings could be upgraded as BCS manages risks associated with its growth, changes in corporate structure and hedging strategy. It would also consider an upgrade as the group achieves its aims of even stronger geographical diversification.
Roman Lokhov, CEO and Chairman of BCS Global Markets, commented:
The positive S&P Global rating outlook on FG BCS LTD and its subsidiaries reflect the expansion that BCS has undertaken across the Globe and our increased research facilities.
Our development of prime brokerage initiatives in the UK and access to the U.S market have led to an expansion of BCS worldwide and we’ll continue to seek opportunities in different markets.
A message from management of BCS Global Markets
The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.