ABA Bank becomes the first bank in Cambodia with two international credit ratings

14/06/2017

ABA Bank becomes the first bank in Cambodia with two international credit ratingsABA Bank becomes the first bank in Cambodia with two international credit ratings

ABA Bank, member of the National Bank of Canada Group, announces today the assignment of ‘B’ long-term and short-term issuer credit ratings from Standard & Poor’s (S&P) Global Ratings, one of the world’s leading credit rating agencies. S&P Global Ratings also assigned 'axB+' long-term and 'axB' short-term ASEAN regional scale ratings to ABA Bank. 

The S&P rating became the second credit rating of ABA Bank after the rating from Dagong Global Credit Rating Agency. Thus, ABA Bank becomes the only bank in Cambodia with two international credit ratings. This recognition denotes ABA’s strong creditworthiness, transparent governance structure, and speaks of the stable position in the local market.

“We are excited about the results of the S&P’s ‘B’ rating that is the same as Cambodian sovereign rating. It validates our strong financial status in the banking industry,” said Askhat Azhikhanov, CEO of ABA Bank. “The stable, solid results ABA Bank delivered in the last five years is in fact what earned us the high rating from S&P. We are also pleased that Standard and Poor’s recognized the value of our business model and sees the benefits it brings to our customers and our shareholders.” 

The S&P experts evaluated ABA as a fast-growing commercial bank, which has an adequate and improving market position, as well as a satisfactory funding and liquidity profile. Being a full-fledged commercial bank, ABA Bank started to focus on higher-yield, micro-business and SME borrowers since 2012 and has been registering above-industry-average, rapid credit growth since then (at 53% compound annual growth rate during 2012-2016). The bank's market position has been constantly improving. As of the end of 2016, ABA Bank was the fourth-largest bank in Cambodia in terms of loans and deposits market share, up from ninth and tenth place in 2010. Likewise, its reported return on equity (measure of profitability and efficiency that defines how much profit the bank generates on shareholders' capital) jumped to 22.5% by end-2016 from 9.5% in 2012. 

"The bank's funding and liquidity profile appears adequate in a Cambodian context, in our opinion," Rujun Duan, S&P Global Ratings credit analyst commented in the recently published press release.

In May 2017, ABA Bank announced assignment of the global scale long-term credit rating ‘B+’ by Dagong Global Credit Rating Agency (Hong Kong), one of the leading rating agencies in Asia. The assigned credit rating based on the Bank’s sound assets quality, stable funding structure and ongoing financial and operational support from its major shareholder, National Bank of Canada. ABA Bank became the first bank in Cambodia rated by Dagong credit rating agency, and is the only bank in Cambodia with “B+” rating.