Commercial Bank’s LT FCR and BSR Outlook Revised to Stable; All Other Ratings Affirmed
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Summary
Ref: QA00220 CRA00- 0 1 9 March 20 21
Commercial Bank’s LT FCR and BSR Outlook Revised to Stable; All Other Ratings Affirmed
Capital Intelligence Ratings (CI Ratings or CI) has revised the Outlook on Commercial Bank’s (Cb) Long-Term Foreign Currency Rating ( LT FCR ) and B ank S tandalone R ating (BSR) to Stable from Negative. At the same time, CI Ratings has affirmed the Bank’s LT FCR and S hort- T erm Foreign Currency Rating (ST FCR ) at ‘A-’ and ‘A1’, respectiv ely, as well as its BSR of ‘bbb-’ .
The revision of the Outlook to Stable reflects the more favourable trend in the Bank’s financial metrics, partially as a result of its new business model as Cb continues to shift the composition of its loan book towards lower-risk sectors , with NPLs trending down and coverage improving . The credit loss absorption capacity is also enhanced .
The Bank’s LT FCR is set three notches above the…