Moody’s upgrades forex credit rating for Brac Bank
Moody's Investor Service has upgraded the foreign currency credit rating for Brac Bank in December 2020 to Ba3 from B1.
Moody's also reaffirmed the lender's local currency deposit rating as Ba3, the highest for any local lender rated by the agency. This means the bank has achieved the Ba3 credit rating from the agency for its entire operation.
This is the fourth consecutive year that the bank has obtained the highest credit rating from the rating agency, according to a press release.
Moody's statement mentions that Brac Bank's rating reflects the bank's robust profitability and capitalisation and strong asset quality compared with those of its industry peers, driven by its competitive advantage in the higher-yielding small and medium-sized enterprise segment and stable funding profile and liquidity.
"Brac Bank stands on a solid ground with stable funding and liquidity, supported by our good governance, brand reputation, and sizable distribution network," said Selim RF Hussain, managing director of Brac Bank.
Moody's report also says that the bank's capitalisation is the highest among the Bangladeshi banks that it rates, supported by strong internal capital generation and a conservative dividend policy.