diff --git a/controllers/servicebinding_controller.go b/controllers/servicebinding_controller.go
index 6219d5e2..e875d93b 100644
--- a/controllers/servicebinding_controller.go
+++ b/controllers/servicebinding_controller.go
@@ -177,10 +177,13 @@ func (r *ServiceBindingReconciler) Reconcile(ctx context.Context, req ctrl.Reque
 			// Recovery - restore binding from SM
 			log.Info(fmt.Sprintf("found existing smBinding in SM with id %s, updating status", binding.ID))
 
-			if !(binding.LastOperation.Type == smTypes.CREATE && binding.LastOperation.State != smTypes.SUCCEEDED) {
-				// store secret unless binding is still being created or failed during creation
+			if binding.Credentials != nil {
 				if err := r.storeBindingSecret(ctx, serviceBinding, binding); err != nil {
-					return r.handleSecretError(ctx, binding.LastOperation.Type, err, serviceBinding)
+					operationType := smTypes.CREATE
+					if binding.LastOperation != nil {
+						operationType = binding.LastOperation.Type
+					}
+					return r.handleSecretError(ctx, operationType, err, serviceBinding)
 				}
 			}
 			r.resyncBindingStatus(serviceBinding, binding, serviceInstance.Status.InstanceID)
diff --git a/controllers/servicebinding_controller_test.go b/controllers/servicebinding_controller_test.go
index 6131a238..d0f7b3e0 100644
--- a/controllers/servicebinding_controller_test.go
+++ b/controllers/servicebinding_controller_test.go
@@ -920,9 +920,6 @@ var _ = Describe("ServiceBinding controller", func() {
 						ServiceBindings: []smclientTypes.ServiceBinding{*smBinding},
 					}, nil)
 			})
-			JustAfterEach(func() {
-				fakeClient.StatusReturns(&smclientTypes.Operation{ResourceID: fakeBindingID, State: string(smTypes.SUCCEEDED)}, nil)
-			})
 			It("should resync successfully", func() {
 				var err error
 				createdBinding, err = createBindingWithoutAssertionsAndWait(context.Background(), bindingName, bindingTestNamespace, instanceName, "fake-binding-external-name", false)