CEEMEA Corporates Today

Research evidence excerpt

CEEMEA Corporates Today

J P M O R G A N CEEMEA Credit Research

03 August 2026

SQB

News EM CEEMEA Corporate Research

Zafar Nazim, CFA AC

• S&P revised the outlook on SQB’s rating from Stable to Negative; We remain (44-20) 7134-7551

OW SQB perps zafar.nazim@jpmorgan.com

J.P. Morgan Securities plc

Prices in this Note are as of the time of writing on Jul 31st. Konstantin Rozantsev AC

(44-20) 7742-0275

konstantin.rozantsev@jpmorgan.com

Emerging Europe J.P. Morgan Securities plc

S&P revised the outlook on SQB’s rating from Stable to Negative; We remain Nikhil Bhat, CFA

OW SQB perps (44-20) 3493-8074

nikhil.x1.bhat@jpmorgan.com

S&P revised its assessment of SQB from BB-/Stable to BB-/Negative. The agency

Lorenzo Parisi, CFA

cited the recent increase in the bank’s Stage 3 plus other owned real estate assets

(44-20) 3493-3150

share to 9% of total at end-2025 (end-2024: 7%), with its expectation that this share lorenzo.parisi@jpmorgan.com

can increase further up to 12% over the next 1-2 years. Per S&P, the increase in J.P. Morgan Securities plc

SQB’s Stage 3 (and also Stage 2) loans reflects mainly a more conservative loans Nandini Bommakanti

assessment by the bank alongside broader improvements in its governance, in (44-20) 3493-3515

preparation for its privatisation. The agency also mentioned the planned sizeable nandini.bommakanti@jpmorgan.com

capital support to the bank from the government as a mitigating factor. S&P noted, J.P. Morgan Securities plc

however, execution risks in the bank’s transformation program. Keshav Maheshwari

(91-22) 6157-3133

keshav.x.maheshwari@jpmchase.com

We remain OW SQBNZU 9.45% perps (ask z+414). This increase in NPLs is an J.P. Morgan India Private Limited

acknowledgement of the past legacy loan problem, which we expect to be cleaned