7 Bangladeshi banks on Moody's review for downgrade

[Imran Khan]

7 Bangladeshi banks on Moody's review for downgrade​

Source: Xinhua

Editor: huaxia

2022-12-13 17:04:15


DHAKA, Dec. 13 (Xinhua) -- Moody's Investors Service has placed seven Bangladeshi banks' long-term ratings and assessments on review for downgrade following an announcement that the rating agency has placed the Bangladeshi government's long-term ratings on review for downgrade.
The U.S.-based agency released its ratings on its website Monday.
It has also downgraded the Social Islami Bank Limited's (SIBL) long-term foreign currency deposit ratings to B3 from B2 and the bank's Baseline Credit Assessment (BCA) to caa1 from b3.
The decision to place the ratings and assessments of seven Bangladeshi banks on review for downgrade is driven by Moody's placement of Bangladesh's Ba3 sovereign rating on review for downgrade on Dec. 9, 2022, it mentioned.
Bangladesh's sovereign credit strength is a key input in Moody's assessments of bank ratings because the country's credit strength affects the government's capacity to provide support to the banks in times of stress.
If Moody's were to downgrade Bangladesh's sovereign rating, it will likely result in lower long-term ratings for the banks.
The rating action also considers the deterioration in the country's foreign exchange reserves and central bank's measures to limit foreign currency outflows, which have tightened foreign currency liquidity in the banking system.
"During the rating review, Moody's will assess if the efforts instituted by the central bank and individual banks to improve their foreign currency liquidity, such as limiting the opening of new letters of credit and efforts to attract remittances, will help to improve the banks' foreign-currency liquidity to support their obligations," the Moody's says in its ratings. ■

7 Bangladeshi banks on Moody's review for downgrade

7 Bangladeshi banks on Moody's review for downgrade-

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[kingQamaR]

So called ecxperts says that Bangladesh be the role model for the developing countries? But the reality is some thing totally different

 

[Sam6536]

So called ecxperts says that Bangladesh be the role model for the developing countries? But the reality is some thing totally different

I think they are indeed developing at their pace which is good.
But consider this they have relatively peaceful borders (barring Myanmar) rn and no huge military expending and there's not much to have high maintenance costs. They could've done and achieved more in the recent past i mean look at other East Asian nations they spend higher on military and still are doing well economically.

 

[epebble]

So called ecxperts says that Bangladesh be the role model for the developing countries? But the reality is some thing totally different

Bangladesh (and Indonesia, Malaysia) are still best examples to disprove the naysayers who argue Muslim nations without oil are condemned to remain in misery and hopelessness. Bangladesh may be having temporary problems, some of them external like oil and grain price inflation, but it is still a beacon of hope for Afghanistan and Pakistan.

 

[AmiEktaKharapChele]

In some countries, we like to work hard on ourselves, in some others we're busy with critiquing our neighbour's performance on economic indices, nevermind our own shoddy state of being.



Pakistanis can sleep well, thanks to these sensationalised new pieces...

Indeed OP is serving the community of willfully ignorant people well.

 

[bluesky]

So called ecxperts says that Bangladesh be the role model for the developing countries? But the reality is some thing totally different

It is because our Hasina Bibi loves to play with fictitious and fake data to charm others. Her data was supported by loans from many countries and institutions.

Now, the foreign sources may shortly stop supplying BD with any funds and BD will be paying back $2.75 billion this FY. This repayment will increase every year and will reach $5 billion in 2030.

Much of this $100 billion loan money has been stolen by Hasina gong.