Moody’s changes City Bank outlook to stable
Moody's Investors Service has changed the outlook to "stable" from "negative" and affirmed issuer rating at B1 for City Bank Limited.
The rating was assigned considering the bank's strength and challenges along with the impact of current economic turmoil from Covid-19 pandemic, said a press release.
The outlook reflects Moody's expectation that Bangladesh's robust economic growth and the pandemic-related forbearance measures that eased debt repayment burden of affected borrowers would limit the banks' asset quality deterioration and support their solvency over the next 12 to 18 months.
The rating reflects the bank's modest asset quality, average capital position and moderate profitability.
It demonstrates improved profitability driven by higher net interest margin, improved capital adequacy ratio and concentration on SME, retail banking and trusted corporate clients to manage asset risk.
Superior strength in retail banking and credit card segments, a sturdy deposit franchise and access to development funds from development financiers are recognised as credit strengths of the bank.
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