South African based Global Credit Rating Co, the African arm of the New York Stock Exchange listed Duff & Phelps has retained Bank of Kigali’s long-term credit rating at A+ and short term credit rating at A1.
The long-term rating of A+ means that although the bank has high credit quality with strong protection factors, adverse changes in business, economic or financial conditions would increase investment risk although not significantly
The rating reflects the Bank’s strong capital position, its systemic importance, strong asset quality and financial performance.
On a short-term basis, the rating is an indication of BK’s very high certainty of timely payment with excellent liquidity factor supported by good fundamental protection factors as well as minor risk factors.
The lender is the first Rwandan company and bank to be rated.
BK’s Managing Director, James Gatera, said in a statement that they are pleased to be the first company in the country to receive a credit rating from one of the leading credit rating agencies in Africa.
“The lender has been able to diversify its funding base with capital recently raised in the IPO,” Gatera said in a statement.
Gatera noted that the rating together with the capital position raises the lender’s investor and customer confidence to a new level.
“Together with the credit lines obtained from international development financial institutions, the bank is the best capitalised and liquid bank in the market.”