Sunday, January 13, 2008

Cambodia-based Acleda Bank PLC assigned 'B+/B'

BANGALORE (Thomson Financial) - Standard & Poor's Ratings Services said it assigned its 'B+/B' counterparty credit ratings (CCR) to Cambodia-based Acleda Bank PLC with a stable outlook, citing the bank's adequate balance sheet strength and satisfactory asset quality.

The agency also assigned its 'D' bank fundamental strength rating on the bank.

S&P said it believes that the bank's asset quality on a long-run steady state basis might be weaker than that indicated by the current very low reported NPA levels due to portfolio seasoning.

An upgrade will hinge upon its ability to maintain good asset quality upon stabilization of its loan portfolio and improvement in core profitability through greater income diversity and an upgrade in Cambodia's sovereign rating, the agency said.

S&P said, however, substantial asset quality slippage from rapid loans growth or major economic deterioration will pose downward pressure on the ratings.

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