S&P reaffirms ABA’s rating with “Positive” outlook
ABA Bank, member of the National Bank of Canada Group, announces today that the world’s leading credit rating agency Standard and Poor’s Global Ratings reaffirmed its 'B' long-term and short-term issuer credit ratings of ABA Bank and assigned a “Positive” outlook reflecting significant growth in the Bank's market share.
According to S&P researchers, the positive outlook on ABA is underpinned by the Bank’s continuous loan and deposit growth, increase of its market share, and good profitability.
“Our outlook revision on ABA reflects the bank's improving business franchise, underpinned by a significant growth in its market share. ABA continues to expand its loan market share, physical and digital distribution network, and customer base. In our opinion, the bank's expansion ambitions and good operating efficiency support its above average profitability,” states the Research Update.
In addition, experts praised the Bank’s advanced digital platforms and its governance structure that form the strong base for substantial growth.
“We assess ABA's digital platforms as a competitive advantage that supports loan and deposit growth. The bank also employs more sophisticated risk management systems, including cash flow analysis to support its credit decision, compared to domestic peers. We are assessing the long-term strength of ABA's business, in particular the sustainability of good asset quality metrics and profitability in a slower credit growth environment and as its market share increases,” S&P said.
The analysts specifically mentioned significant national economy growth and moderating risks in the financial sector, given recently restrained loan growth and the government's measures to cool the property market and control credit flow via higher capital and more stringent liquidity requirements.
S&P assigned its ‘B’ long-term and short-term issuer credit ratings to ABA Bank in June 2017.
About S&P Global Ratings:
With more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities, S&P Global Ratings is the world’s leading provider of credit ratings. Its credit risk analyses, research and insights support the growth of transparent, liquid debt markets worldwide. S&P Global Ratings has approximately 1,500 credit analysts in 28 countries around the globe. Its Head Office is headquartered in New York City, USA. For more information visit www.spratings.com.