The world's leading credit rating agency, S&P Global Ratings, has upheld BRAC Bank's Credit Rating 'B+' with 'Stable' Outlook, despite industry and economic challenges.
The agency has affirmed this credit rating for five consecutive years with stable outlook despite challenging operating environment, read a press release.
BRAC Bank is the only Bangladeshi bank to have conducted credit rating by the world's most renowned agency "S&P Global Rating".
S&P highly appreciated management and corporate governance, diversified business position, highest capital base and balanced funding mix and adequate liquidity of the bank.
"We believe the bank will maintain its satisfactory franchise, particularly in the SME and retail segments in the underpenetrated Bangladesh market, over the next two years. We expect BRAC Bank's deposit base to remain adequate due to the bank's good distribution network, diversified customer base, and solid brand name," S&P notes in the rating citation about BRAC Bank's strength.
"The stable outlook on BRAC Bank reflects our view that the bank will steadily navigate challenging operating conditions in Bangladesh and maintain its financial profile over the next 12-18 months," it continues.
Commenting on the credit rating, Selim RF Hussain, managing director and CEO of BRAC Bank, said: "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. On this proud moment, we would like to thank all of our customers, shareholders, investors, colleagues, regulators, board members and other stakeholders whose unwavering trust and support make us what we are today,"
BRAC Bank is also the only bank to achieve Credit Rating equivalent to Sovereign Rating of Bangladesh by Moody's.
Apart from S&P and Moody's, BRAC Bank has long been conducting credit rating by three other local credit rating agencies - Credit Rating Agency of Bangladesh Limited (CRAB), Credit Rating Information and Services Limited (CRISL) and Emerging Credit Rating Limited and has been rated the highest in Bangladesh.