CRDB gets Moody’s stable rating status
The CRDB Bank managing director, Dr Charles Kimei (left), briefs journalists in Dar es Salaam yesterday on Moody’s high rating. With him is his deputy responsible for operations and customer service, Mr Sangata Bhandhopandyay. PHOTO | SALIM SHAO
What you need to know:
A statement from Moody`s Investors Services, which was made available in Dar es Salaam yesterday, said CRDB Bank acquired the status due to its impressive and consistent performances in local currency deposit ratings, foreign currency deposit ratings and baseline credit assessment.
Dar es Salaam. A globally respected rating agency, Moody`s Investors Services, has assigned first time local currency deposit ratings of B1 to CRDB Bank.
It signals that Tanzania’s lender is amongst the top 10 African banks that offer stable and safer investment avenues. The B1 stable rating status is the highest rating to have been acquired by banks or financial institutions in sub-Saharan Africa.
A statement from Moody`s Investors Services, which was made available in Dar es Salaam yesterday, said CRDB Bank acquired the status due to its impressive and consistent performances in local currency deposit ratings, foreign currency deposit ratings and baseline credit assessment.
Besides the local currency ratings, Moody’s assigned CRDB Bank a B2 foreign currency deposit ratings and a b2 baseline credit assessment (BCA) and adjusted BCA.
CRDB Bank managing director Charles Kimei said here yesterday that the ratings were a getaway for the financial entity to get more business opportunities.
“We are proud to be the first bank in Tanzania to have acquired the B1 stable outlook rating, which showcases our continuous commitment, proper governance and endless efforts in putting our customers’ needs first by always being innovative… We, at CRDB Bank, are very optimistic that this new status will attract more investors to do business with us and hence open more doors for our country`s prosperity,” said Dr Kimei. Moody’s methodology starts with an assessment of a bank’s operating environment.
The bank’s ratings reflected a leading domestic franchise, characterized by an extensive distribution network and diversified deposit-based funding profile, which has sustained strong profitability and healthy liquidity buffers.
According to Dr Kimei, Moody`s also noted that CRDB Bank had a stable outlook and balance sheets that elevates credit risks against its strong loss absorbing buffers in terms of profitability and capital.
Seven banks were rated on the continent. From the East African Community only two – CRDB and KCB — got the B1 stable rating status.
