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27 January 2023

Business Insider Bangladesh

Moody’s assigns ’Ba3’ rating to BRAC Bank

BI Report || BusinessInsider

Published: 16:18, 26 November 2022  
Moody’s assigns ’Ba3’ rating to BRAC Bank

BRAC Bank logo

Rating agency Moody's has once again assigned a “Ba3” rating to BRAC Bank with a stable outlook.

BRAC Bank is now the only Bangladeshi Bank with a ‘Ba3’ rating, which is equivalent to the sovereign rating of Bangladesh, an accomplishment the bank has been maintaining since 2019.

According to Moody’s latest affirmation on September 22, 2022, BRAC Bank’s Ba3 long-term deposit and issuer ratings reflect its better-than-peer average asset quality and capitalisation. The ratings also reflect the bank's strong funding structure and good liquidity.

The stable outlook on BRAC Bank's ratings reflects Moody’s expectation that Bangladesh's robust economic growth and the pandemic-related forbearance measures that eased the debt repayment burden of affected borrowers will limit the bank's asset-quality deterioration and support its solvency over the next 12-18 months, Moody’s report added.

Commenting on the rating, Managing Director & CEO of BRAC Bank Selim RF Hussain said efficient management of balance sheet and liquidity, strong compliance culture, an independent and visionary board and a professional management team have been key determinants of this credit rating excellence over the years.

“We are happy to share this achievement with our valued customers, shareholders, regulators and other stakeholders whose unwavering trust makes us what we are today,” said Hussain.

Good governance, compliance, ethics and transparency are the pillars of BRAC Bank’s business model. Industry best credit rating for consecutive years, highest investment by overseas investors, highest market capitalization and recognitions from SAFA, ICAB bear testimony to the bank’s strong governance and robust financial strength and image on the local and global stage.