Brac Bank retains Moody’s highest credit rating

Brac Bank has retained the highest credit rating of Moody’s Investor Service, Ba3, for the third consecutive year since 2017.

It is the only Bangladeshi bank with the rating which is equivalent to sovereign rating of Bangladesh as per Moody’s affirmation on November 21, the bank said in a statement yesterday.

“According to Moody’s, the affirmation of Brac Bank’s rating reflects the bank’s strength in the SME segment that has led to superior asset quality and profitability when compared to its rated peers in Bangladesh,” according to the statement.

 The bank is also less vulnerable to asset risks arising from corporate credit exposures, because of the high proportion of SME loans in its portfolio, it said.

The bank’s SME segment constituted 45 percent of its total loans as on September 30, 2019, the statement added. “Good governance, compliance, ethics and transparency are the pillars of our business model,” said Selim RF Hussain, CEO of Brac Bank.

“And credit rating by international credit rating agencies, highest investment by overseas investors, highest market capitalisation and consecutive recognitions from SAFA, ICAB and ICMAB bear testimony to our good governance and robust financial strength and image in global setting.”

“This unique achievement came as a result of our continuous efforts towards improving and maintaining industry above capital base, better asset quality, good governance and superior liquidity position,” he added.