BRAC Bank secures B+ credit rating from S&P

BRAC Bank has secured a 'B+' credit rating with a stable outlook, as affirmed by the world's leading credit rating agency, S&P Global Ratings.

Despite challenges in the banking sector, the US-based credit rating agency has expressed confidence in BRAC Bank, maintaining a solid 'B+' rating with a stable outlook.

This is equivalent to the sovereign rating of Bangladesh and the highest among the banks S&P rates in the country, the bank said in a press release.

The credit rating agency, in a statement, said, "BRAC Bank has been able to establish a good branch network and online presence. The bank's access to retail remittances and export-oriented clients will help it navigate the challenges arising from Bangladesh's weak external position."

"We believe the bank will maintain its satisfactory franchise, particularly in the SME and retail segments in the underpenetrated Bangladeshi market. BRAC Bank also benefits from above-industry-average asset quality," it added.

"The stable outlook on BRAC Bank reflects our view that the bank should be able to steadily navigate the challenging operating conditions in Bangladesh and maintain its financial profile over the next 12-18 months," S&P continued.

Commenting on the credit rating from the world's most prominent agency, Selim RF Hussain, managing director and CEO of BRAC Bank, said, "This distinction is a recognition of our unwavering commitment to enhancing our capital base, asset quality, governance, and liquidity positioning."

"This top-notch rating from an internationally acclaimed agency would bode well for the country's banking sector and elevate the reputation of Bangladesh on the world stage," he added.

In addition to S&P, BRAC Bank is also the highest-rated bank in Bangladesh by CRAB (AAA) and Moody's (B2).