Baiduri Bank achieved a rating of A-/A-2 with a stable outlook from Standard & Poor’s (S&P) in its latest credit report, an upgrade from BBB+, said the bank in a press conference at Baiduri Bank Headquarters yesterday.
“A rating of A- place us in the strong investment category, but somewhat susceptible to adverse economic changes and conditions,” said Baiduri Bank CEO Ti Eng Hui.
He said it was an important milestone for the bank, and an indicator of the financial soundness and strength of Bruneian banks.
The CEO said the bank has been able to demonstrate strong profitability and profit retention despite the COVID-19 pandemic through its prudent capital management, which is one of the key reasons for the ratings upgrade.
“This places Baiduri Bank in the high investment grade category alongside with regional and international peers,” said Ti.
The improved rating offers more opportunities to access ASEAN countries and take part in ASEAN integration, he said.
“Now that countries are into their endemic phase, it is time to look into these opportunities,” he added.
Baiduri Bank Deputy CEO (Business Development) Pengiran Azaleen bin Pengiran Dato Haji Mustapha said, “In terms of what this improved credit rating means for the financial industry in Brunei, it’s both local banks are now highly rated.
“It is something that Brunei can be proud of, that the two strongest local banks are capable of matching other banks in the region.”