Brac Bank rated 'stable' by S&P despite industry risk trend being 'negative'

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Brac Bank has once again secured a "B+" credit rating with a "Stable" outlook, as affirmed by the renowned US-based credit rating institution, S&P Global Ratings.

Despite the recent Banking Industry Country Risk Assessment (BICRA) for Bangladesh seeing a revision in industry risk trend from stable to negative, S&P Global Ratings maintained Brac Bank's solid B+ rating with a stable outlook.

S&P Global Ratings' affirmation on 8 August, highlights Brac Bank's prominent position in the industry. Their long-term rating of B+ with a stable outlook is a testament to Brac Bank's superior asset quality, proficient liquidity management in foreign and local currency, and capital adequacy. This is further buttressed by its diversified business model, extensive distribution network, vibrant management team, and robust corporate governance culture.

A statement from S&P Global Ratings regarding Brac Bank elucidated, "Brac Bank's established franchise enables it to access foreign currency from its retail remittance and export-oriented clients. This somewhat alleviates the US dollar funding pressure facing the broader banking sector. We believe the bank will navigate challenging operating conditions in Bangladesh and maintain its financial profile over the next 12-18 months."

Speaking about the credit rating, Selim RF Hussain, managing director and CEO of Brac Bank, remarked, "This distinction is a culmination of our unwavering commitment to enhancing our capital base, asset quality, governance, and liquidity positioning. It fills us with immense pride to be the sole company in Bangladesh to be rated by S&P Global Ratings."

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 legacy."