Saturday, May 18, 2024
32 C
Brunei Town

S&P Global affirms BIBD’s A- rating

International credit ratings agency S&P Global affirmed its A- rating with a Stable Outlook on Bank Islam Brunei Darussalam (BIBD), according to the bank yesterday.

In a statement, the bank said its A- rating which it has held since 2015 puts its on par with other leading banks in the Asia-Pacific region.

According to S&P Global, the rating reflects BIBD’s position with a strong market share, diversified business and established track record, while also acknowledging the bank’s robust capitalisation.

The report also took note of Brunei Darussalam’s strong fiscal and balance sheet positions over the years. While Brunei’s economy contracted in recent quarters due to unanticipated production disruptions as well as a surge in COVID-19 cases, S&P Global expected economic growth to accelerate in 2022, supported by stronger energy prices, high vaccination rates and sustained growth in the downstream petrochemical sector.

Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah, in his capacity as Chairman of BIBD commented, “Alhamdulillah, we are humbled by this prestigious affirmation. At a time when global and regional economies were adversely affected by COVID-19, the Government managed to minimise the full economic impact of the pandemic owing to well-coordinated strategies and solid policies. Throughout the challenging year, BIBD remained prudent in our business participation with heightened risk management to ensure stable growth, and this is reflected in S&P’s rating.

“Despite the economic impact of COVID-19 on the overall economy, BIBD has managed to maintain its strong market share while also finding ways to serve our shareholders, our customers and the nation in various ways.”

According to S&P Global, their stable outlook on BIBD reflects their expectation that BIBD will maintain its high systemic importance in Brunei and that the Bank’s financial profile will continue to improve over the next 12-18 months.

BIBD’s Acting Managing Director and CEO, Hajah Noraini binti Haji Sulaiman said, “This rating is particularly meaningful for us. Amid a particularly challenging year, the bank’s immediate strategy was to remain prudent in our business undertakings which allowed us to remain profitable and stable.”