Leading international ratings agency Standard & Poor’s (S&P) reaffirmed its credit rating of BBB+/A-2 with stable outlook for Baiduri Bank, placing the bank in the company of strong regional and global banks.
The report provided by S&P stated that the stable outlook on Baiduri Bank reflects their expectation that the bank “will maintain its high systemic importance in Brunei”.
The outlook also reflects their view that Baiduri Bank’s financial profile “will remain steady due to their adequate internal capital accruals amid low- to mid-single digit growth” over the next 18 to 24 months, a press release stated.
It also stated that the rating reflects the bank’s strong market share and diversified business in the Sultanate with a dominant market share of loans and deposits.
The bank’s liquidity and capital ratios are also stronger than those of several global peers and witnessed a significant improvement compared to 2018.
Baiduri Bank CEO Ti Eng Hui said, “We are pleased that Standard & Poor’s reaffirmed our BBB+/A-2 with stable outlook rating. In the face of slow economic growth, a very low interest rate environment and a global pandemic, this reaffirmed rating shows resilience in our three core businesses and the strength of our balance sheet and capital ratios.”
S&P are the world’s leading provider of credit ratings. With over one million credit ratings on government, corporate, financial sector and structured finance entities and securities, S&P ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence.