BRAC Bank retains S&P ‘B+’ rating with stable outlook

BRAC Bank PLC has obtained a 'B+' long-term credit rating with a 'Stable' outlook, as affirmed by S&P Global Ratings, the world's leading credit rating agency.

This is equivalent to the sovereign rating of Bangladesh and marks the continuation of this achievement for the last nine years, according to a press release.

Despite challenges in the banking sector, S&P has maintained its confidence in BRAC Bank and stated in its report released on November 26 this year: "BRAC Bank will maintain its financial profile amid tough operating conditions. BRAC Bank's improved profitability, high earnings retention, and calibrated loan growth should support the risk-adjusted capital ratio over the next two years."

"We expect the bank's non-performing loan ratio to stay at 3.1 percent-3.5 percent over the next 12-18 months, significantly lower than the average for Bangladesh's banking sector. The bank's balanced loan book and proactive risk management should keep asset quality healthy," the S&P Global Ratings report added.

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

Commenting on the rating from the globally renowned agency, Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank PLC, said: "This recognition reflects our steadfast commitment to strengthening our capital base, asset quality, governance standards, and liquidity position."

"Achieving such a distinguished rating from an international authority is not only a milestone for BRAC Bank but also a positive signal for Bangladesh's banking sector on the global 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).