Moody's said it assigned first-time ratings to Bangladesh-based BRAC Bank Ltd., with a stable outlook.
The rating agency said it assigned the bank local- and foreign-currency issuer ratings and local-currency deposit ratings of Ba3/Not Prime and foreign currency deposit ratings of B1/Not Prime. Further, it assigned a stand-alone baseline credit assessment and adjusted baseline credit assessment of "b1" and a counterparty risk assessment of Ba3(cr)/NP(cr) to the bank.
The long-term ratings reflect Moody's assumption of moderate systemic support for the bank in case of stress. The bank's baseline credit assessment is driven by its high profitability, healthy asset quality metrics and good capital levels, the rating agency said. Further, the assessment factors in the risks to asset quality from the bank's very strong loan growth over the last few quarters and its relatively weak liquidity profile.
