Moody’s updates City Bank’s outlook

Moody's Investors Service has released its latest credit opinion on City Bank, recognising its average profitability, and modest asset quality and capitalisation, which are balanced by its stable liquidity and improving deposit franchise.

City Bank has been affirmed issuer rating of B2 with a stable outlook, which reflects its moderate probability of support from the government of Bangladesh (B1 stable) and the bank's expected stability of credit fundamentals as gradual improvements in funding conditions balance rising asset risks, said a press release.

Superior strength on consumer banking and credit card segments and access to development funds from development financiers are recognised as credit strengths of the bank.

However, modest asset quality because of risks in rescheduled and restructured loans and moderate capitalisation strength have taken a toll on some of the key parameters of the rating, it said.