Moody’s assigns Ba3 rating to Brac Bank

Moody's Investors Service has assigned a Ba3 rating to Brac Bank amidst the ongoing Covid-19 pandemic.  Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk, according to Moody's.

One of three big credit rating agencies, Moody's has also changed the outlook from "negative" to "stable".

It has also affirmed long-term local and foreign currency deposit and issuer Ba3 ratings for the fifth consecutive year, said a press release.

Moody's expects Bangladesh's robust economic growth and pandemic-related forbearance measures, which eased the debt repayment burden of affected borrowers, would limit the bank's asset quality deterioration and support solvency over the next 12 to 18 months.

The funding structure is strong and has improved, backed by its established domestic franchise, Moody's reported.

"We are pleased to receive this news, especially given the abundance of financial challenges resulted due to Covid-19," said Selim RF Hussain, managing director and CEO of Brac Bank.

"Brac Bank has a solid ground, records of financial stability and prudent financial management, and we are committed to continuing that legacy – even under difficult circumstances," he added.