S&P​ upgrades​ ABA​ Bank’s​ credit​ rating​ to​ B+

12/12/2019

S&P​ upgrades​ ABA​ Bank’s 1S&P​ upgrades​ ABA​ Bank’s 1

The​ third​ largest​ commercial​ bank​ in​ Cambodia​ and​ a​ subsidiary​ of​ National​ Bank​ of​ Canada,​ announces​ that​ its​ long-term​ issuer​ credit​ rating​ from​ Standard&Poor’s​ Global​ Ratings​ Agency​ (S&P)​ was​ raised​ from​ ‘B’​ to​ ‘B+’​ with​ the​ Stable​ outlook.

“We​ are​ glad​ to​ receive​ the​ credit​ rating​ upgrade​ from​ S&P​ as​ it​ reflects​ our​ excellent​ performance​ and​ confirms​ ABA’s​ strong​ positions​ in​ the​ market,”​ commented​ Zhiger​ Atchabarov,​ Chief​ International​ Operations​ Officer​ of​ ABA​ Bank.​ “This​ is​ the​ result​ of​ the​ implementation​ of​ our​ sound​ business​ strategy​ that​ benefits​ customers​ and​ shareholders,”​ he​ added.

The​ S&P​ experts​ view​ ABA's​ digital​ platform​ and​ management​ capabilities​ as​ the​ bank's​ competitive​ advantage,​ supported​ by​ oversight​ from​ its​ parent,​ National​ Bank​ of​ Canada.

“We​ raised​ our​ rating​ on​ ABA​ based​ on​ the​ bank's​ material​ and​ growing​ market​ share​ of​ loans​ and​ deposits,​ with​ above-average​ profitability.​ ABA​ is​ currently​ the​ third-largest​ bank​ in​ Cambodia​ and​ its​ business​ franchise​ covers​ urban​ and​ rural​ customers,​ and​ has​ a​ market-leading​ digital​ platform.​ In​ our​ view,​ the​ bank's​ competitive​ advantage​ will​ likely​ continue​ to​ support​ long-term​ business​ stability,”​ states​ the​ Research​ Update​ of​ S&P.

“ABA's​ growing​ customer​ franchise​ across​ the​ country​ and​ its​ strong​ presence​ in​ the​ micro​ and​ small​ and​ midsize​ enterprise​ (MSME)​ lending​ segment​ will​ continue​ to​ support​ its​ business​ position.​ ABA​ has​ been​ expanding​ its​ operations​ rapidly​ since​ 2010,​ especially​ in​ the​ MSME​ segment.​ We​ estimate​ ABA's​ market​ share​ to​ be​ about​ 10​ percent​ for​ loans​ and​ about​ 12​ percent​ for​ deposits​ as​ at​ June​ 30,​ 2019,”​ S&P​ analysts​ added.

The​ Stable​ outlook​ reflects​ the​ view​ that​ ABA​ will​ sustainably​ manage​ rapid​ loan​ and​ deposit​ growth,​ and​ will​ continue​ to​ report​ good​ asset​ quality​ in​ Cambodia's​ high-risk​ operating​ environment.

S&P​ Global​ Ratings​ assigned​ ‘B’​ credit​ rating​ to​ ABA​ Bank​ in​ 2017​ and​ reaffirmed​ it​ in​ 2018.

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.