BRAC Bank retains Moody's best credit rating in Bangladesh
The renowned US-based agency also upgraded country's banking industry outlook to ‘stable’ from ‘negative’
BRAC Bank has again got the highest credit rating with a 'stable' outlook affirmed by the internationally renowned agency Moody's Investor Service.
BRAC Bank is now the only Bangladeshi Bank with a 'B1' rating, equivalent to the Sovereign Rating of Bangladesh, an extraordinary accomplishment the bank has maintained since 2019.
The world-renowned credit rating agency - Moody's Investors Service - has changed the outlook for Bangladesh's banking system to stable from negative, reflecting their expectation that profitability and liquidity stress have eased. The stable outlook also reflects their expectation that the government will continue to support banks when needed to maintain systemic stability.
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As per Moody's, BRAC Bank has the highest core capital base among the banks they rate in Bangladesh. Earlier in December 2023, S&P Global Ratings was again awarded a 'B+' Credit Rating with 'Stable' Outlook to BRAC Bank. BRAC Bank is the only Bangladeshi company rated by S&P Global Ratings.
The continuous highest rating from the world's top two rating agencies i.e. Moody's Investor Service and S&P Global Ratings reflects BRAC Bank's better-than-industry average asset quality, liquidity, and capital adequacy, which are supported by its diversified business model, wide distribution network, dynamic management team, and strong corporate governance culture.
The stable outlook reflects that the bank will steadily overcome challenging operating conditions in Bangladesh and maintain its financial profile over the next 12-18 months.
It is well-known that BRAC Bank is also rated "AAA," the highest possible rating by both the Credit Rating Agency of Bangladesh (CRAB) and Emerging Credit Rating Ltd.
Commenting on the rating, the bank's Managing Director & CEO, Selim R. F. Hussain, said: "Efficient management of balance sheet and liquidity, strong compliance culture, independent and visionary board and a professional management team have been key determinants of this credit rating excellence over the years. It fills us with immense pride to be the sole bank in Bangladesh to have achieved a credit rating equivalent to the sovereign rating of Bangladesh.
He added, "On this momentous occasion, our heartfelt gratitude goes out to our customers, shareholders, investors, team members, regulators, board members, and all stakeholders. Their steadfast trust and support have been instrumental in crafting our success."
