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 BRAC Bank's Local Currency Deposit Rating as "Ba3" - the highest for any Bangladeshi bank rated by Moody's, said a press release.
This is the fourth consecutive year that the bank has obtained the highest credit rating from the internationally renowned rating agency.
Moody's statement mentions that BRAC Bank's rating reflects the bank's robust profitability and capitalisation, strong asset quality compared with those of its industry peers; driven by its competitive advantage in the higher-yielding small and medium-sized enterprise (SME) segment; and stable funding profile and liquidity.
Commenting on the issue, Selim RF Hussain, managing director of BRAC Bank said, "BRAC Bank stands on a solid ground with stable funding and liquidity, supported by our good governance, brand reputation, and sizable distribution network".
The report also says that BRAC Bank's capitalisation is the highest among the Bangladeshi banks that they rate, supported by strong internal capital generation and a conservative dividend policy.
BRAC Bank is the only Bangladeshi bank to maintain the sovereign rating standard of Ba3 for four consecutive years, the press release read.