Global rating agency Moody’s Investors Service has lowered the credit rating of six local banks in Bangladesh by one notch following its recent downgrade of the country’s sovereign credit rating. The affected banks include Brac Bank, City Bank, Dutch-Bangla Bank, Eastern Bank, NCC Bank, and Premier Bank. The downgrade in the bank’s ratings directly results from the country’s sovereign rating being downgraded. The Association of Bankers, Bangladesh’s chairman expressed concerns about increased costs for local banks in conducting international business, such as higher charges, fees, and commissions for settling letters of credit with foreign banks. Moody’s cited factors such as heightened external vulnerability, persistent liquidity risks, and institutional weaknesses as reasons for the sovereign rating downgrade. The individual bank ratings varied based on asset quality, profitability, capitalization, and liquidity.
Moody’s Downgrades Credit Ratings of Six Banks
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