Revolut gets first credit rating as S&P expects bond market debut for the fintech

S&P Global Ratings has assigned Revolut Ltd. an investment-grade credit rating of BBB+ with a positive outlook, according to a report by the agency published Thursday. It is the fintech’s first rating from a credit rating agency and comes as Revolut expands outside of its home market of the UK, Bloomberg reports.

“Revolut’s strong consumer brand, scalable technology platform, and increasingly diversified product offering supports its business position,” S&P stated in its report. S&P expects Revolut’s holding company to begin raising funds next year by issuing senior unsecured bonds, which rank ahead of subordinated debt.

S&P argues that Revolut needs to build a buffer of debt that can absorb losses to meet regulatory requirements. Because Revolut’s balance sheet has exceeded GBP40 billion ($53.5 billion), the Bank of England would seek to put the fintech through a resolution process in which debtholders absorb losses if it were to fail, according to the report.

S&P expects Revolut’s loan portfolio to more than double this year and again in 2027 as the company expands unsecured retail lending and begins offering mortgages in selected countries.

Revolut’s BBB+ rating is the highest notch in the lowest investment-grade category, BBB. S&P flagged several risks for the company. In particular, customers are less likely to use Revolut as their primary bank than they are traditional banks, while rapid global growth “may heighten its operational complexity and compliance risks.”