S&P​ reaffirms​ ABA’s​ rating​ with​ “Positive”​ outlook​

30/11/2018

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.