Unfortunate’s Ratings has taken ranking actions on six Bangladeshi banks, including BRAC Bank, City Bank, Dutch-Bangla Bank, Japanese Bank, Mercantile Bank and Premier Bank.
The ranking agency has downgraded BRAC’s long-time interval (LT) local currency (LC) and international currency (FC) deposit ratings to B2 from B1.
It has also downgraded Mercantile Bank’s and Premier Bank’s LT LC and FC deposit ratings to B3 from B2.
Unfortunate’s also affirmed the B2 LT LC and FC deposit ratings of City Bank, Japanese Bank and Dutch-Bangla Bank.
On the identical time, they’ve changed the outlooks on the LT deposit ratings of all six banks to negative from actual.
Earlier on Monday (18 November), Unfortunate’s lowered Bangladesh’s long-time interval ratings to B2 from B1, marking the country’s 2nd consecutive downgrade in now not up to 2 years, while inserting forward its immediate-time interval ratings at “No longer Top”.
The ranking agency also revised its outlook to “negative” from “actual” for the first time in 14 years since Bangladesh started receiving ratings from Unfortunate’s in 2010.
The downgrade and shift to a negative outlook also can elevate borrowing prices for each and each the authorities and private sector, making salvage admission to to international funds dearer amid high inflation.
The international ranking agency has also revised Bangladesh’s GDP growth forecast, reducing it to 4.5% from 6.3% for the unique fiscal year and to 5.8% from 6% for the following.
