International credit rating agency praises ABA Bank’s financial stability
ABA Bank (member of National Bank of Canada Group) announces today that it has been assigned a global scale long-term issuer credit rating of ‘B+’ by Dagong Global Credit Rating Agency (Hong Kong), one of the leading rating agencies in Asia. The assigned credit rating reflects 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. Assignment of this credit rating shows the Bank’s strong creditworthiness and the full ability to settle its financial obligations. The outlook is stable and reflects rating experts’ expectations that the Bank’s capitalization and liquidity position will remain stable over the next twelve months.
Commenting on the rating assignment, ABA Bank’s CEO Askhat Azhikhanov said, “We are proud to have achieved the “B+” credit rating by Dagong agency as it proves the hard work of our staff to achieve good and consistently improving financial fundamentals. To our existing and perspective customers, this rating is an assurance of ABA Bank stability. The invaluable support demonstrated by our shareholder, National Bank of Canada, ensures that we remain well-funded and financially stable, and we leverage this strong relationship to help our clients grow and achieve their financial goals.”
Making the announcement of the Bank’s credit rating, the analyst of Dagong agency noted, “Dagong HK considers ABA Bank’s asset quality to be satisfactory given its strict collateral policies and tight credit processes, which helped keep its non-performing loan (NPL) ratio under 1%.”
For the period of 2012-2016, ABA Bank has shown stable increase of its deposit and loan portfolio with average annual growth of 54% and 40% respectively, compared to 24% and 20% for the whole industry during the same period. The Bank has also built a growing client base through its strong digital banking services and self-banking channels including mobile app, internet banking, cash-in kiosks, live chat and call-centers. In 2016, ABA became the number 1 Cambodian commercial bank in terms of Return on Equity (ROE). This ratio shows ABA’s effectiveness of generating profit with the money shareholders have invested.
About Dagong Global Credit Rating (Hong Kong) Co., Limited:
Dagong Global Credit Rating (Hong Kong) Co., Ltd, (Dagong HK) a subsidiary of Dagong Global Credit Rating Co., Ltd is one of the largest rating agencies in China with more than 22 years history of operations. A Type 10 License (Providing Credit Rating Services) was granted to Dagong HK by the Securities and Futures Commission of Hong Kong in July 2014.
Dagong HK is dedicated to providing a wide range of credit rating services for issuers and investors, mainly covering corporate and financial institutions ratings, which could contribute to debt issuances in financial markets. Dagong HK also provides credit risk research and other services related to credit ratings.