Thursday, January 10, 2008

Cambodia-based Acleda Bank assigned 'B+/B' CCR with stable outlook - S&P

01.10.08

BANGALORE (Thomson Financial) - Standard & Poor's Ratings Services said it assigned its 'B+/B' counterparty credit ratings (CCR) to Cambodia-based Acleda Bank PLC with a stable outlook, citing the bank's adequate balance sheet strength and satisfactory asset quality.

The agency also assigned its 'D' bank fundamental strength rating on the bank.

S&P said it believes that the bank's asset quality on a long-run steady state basis might be weaker than that indicated by the current very low reported NPA levels due to portfolio seasoning.

An upgrade will hinge upon its ability to maintain good asset quality upon stabilization of its loan portfolio and improvement in core profitability through greater income diversity and an upgrade in Cambodia's sovereign rating, the agency said.

S&P said, however, substantial asset quality slippage from rapid loans growth or major economic deterioration will pose downward pressure on the ratings.

1 comment:

Anonymous said...

This is a good positive news for the bank. I hope the management can see the benefits from receiving B+ rating by S&P. Its an uplift news & the bank itself should push for stronger growth and expansion by adding more local offices to increase assets and liquidity. Besides Assets & Liquidity factors, they must maintain strong equity base as well.

Good luck.
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