31.7 C
Brunei
Sunday, February 5, 2023
31.7 C
Brunei
Sunday, February 5, 2023
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    Baiduri Bank receives positive revised rating

    Standard & Poor’s (S&P) Global Ratings revised the outlook on its long-term rating on Baiduri Bank to ‘positive’ from ‘stable’ in its latest credit rating report resulting in an improved credit rating of BBB+/A-2 with positive outlook from BBB+/A-2 with stable outlook for the bank. This new rating places Baiduri Bank in the company of leading regional banks.

    According to the report, this revision reflects the rating agency’s expectation that Baiduri Bank “will sustainably maintain its capital buffers over the next 12 to 18 months thanks to adequate capital management”, leading to moderate credit growth, satisfactory profitability, and profit retention over the period. The positive outlook also indicates that S&P could raise its ratings on Baiduri Bank in the next 12-18 months if the bank sustains its capital buffers.

    S&P anticipates that the bank will see credit growth of three to five per cent, with “bulk of the growth generated from wholesale customers as the government looks to boost the economy and support local firms through contracts from government-linked companies, foreign direct investment projects, the oil and gas sector, and infrastructure development”.

    According to S&P’s forecasts, Brunei’s economic growth will accelerate to above three per cent in the next two years, supported by stronger energy prices, recovering external demand, the country’s continued success in controlling the COVID-19 pandemic, and sustained growth in the petrochemical sector.

    Baiduri Bank CEO Ti Eng Hui said, “While the economy is experiencing positive growth amid the improving COVID-19 situation in the country, this revised rating is a testament of our strength, resilience, and ability to adapt quickly to evolving economic conditions. It also reflects our strong capital position and robust balance sheet management.”

    He elaborated that the revised rating is a positive reflection of the bank’s solid performance over the last 12 months, underpinned by a strong business model focussing on its core businesses and sustainable growth.

    S&P is the world’s leading provider of credit ratings. With more than 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 to educate market participants so they can make decisions with confidence.

    Baiduri Bank’s headquarters. PHOTO: BAIDURI BANK
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