Credit Rating Agency of Bangladesh Limited (CRAB) upgraded the long-term rating to AA1 from AA2 and also short-term rating to ST-1 from ST-2 for City Bank.
The rating was assigned considering the bank's strong capital base, relatively low large loan concentration, provision cushion for loans and advances, low-cost stable deposit base, operational efficiency in terms of cost to income ratio and good liquidity ratio.
Long term rating AA1 of City Bank reflects that the bank has very strong capacity to meet its financial commitments with low credit risk. With this latest rating, the bank is one notch closer to the highest credit rating possible.
Short term rating ST-1 of City Bank reflects stable outlook having highest capacity for timely repayment of obligations with excellent position in terms of liquidity, internal fund generation, and access to alternative sources of funds.