Baiduri Bank gets credit rating upgrade from S&P Global
Standard & Poor’s Global Rating (S&P) has upgraded Baiduri Bank’s credit rating from “BBB+” to “A-” in its latest credit rating report resulting in an A-/A-2 with Stable Outlook rating, according to the bank in a press conference recently.
The milestone achievement marked the first time Baiduri Bank has achieved an A- rating since its first rating in 2014.
According to S&P, Baiduri Bank’s credit rating was upgraded to reflect their expectation that the Bank will maintain good capital buffers as a result of prudent capital management. Strong profitability and profit retention were also cited as key reasons.
Speaking on the achievement, Baiduri Bank CEO Ti Eng Hui stated that moving from “BBB+” to “A-” rating places the bank in the high investment grade category, alongside regional and international players.
“As an S&P credit rating is a common and transparent global standard, it allows us to benchmark against our international peers and subsequently identify areas for continuous improvement and improved access to international financial markets,” said the CEO.
“A strong S&P rating like Aalso opens up access to new markets and paves the way for Bruneian banks to readily participate in ASEAN Financial Integration,” he added.
Not only that, the CEO also shared that the upgraded rating also positively reflects the way the bank overcame challenges posed by the COVID-19 pandemic, demonstrating its resilience.
“Despite all the challenges, Baiduri Bank has been able to demonstrate strong profitability and profit retention through its prudent capital that is more than enough to sustain the growth of the bank,” he said.
Also commenting on the milestone, Baiduri Bank Deputy CEO (Business Development) Pg Azaleen Pg Dato Haji Mustapha said that In terms of what this improved credit rating means for the financial industry in Brunei, having two local banks rated A- reflects the strength of the country’s financial sector.
Also present at the press conference were Deputy Chief Executive Officer, Compliance, Corporate Governance and Legal Advisory, Manuel Bulens and Head of Group Treasury and Institutional Banking, Ak Nor Muhammad Nizam Pg Hj Tengah.