Rating Release
Agusto & Co. affirms the “Bbb“ rating assigned to Nova Bank Limited, with a stable outlook.
The rating expires on 30 June 2025.
Agusto & Co. hereby affirms the “Bbb” rating of Nova Bank Limited (“Nova Bank” or “the Bank”). Our rating reflects the Bank’s good liquidity profile, adequate capitalisation and acceptable asset quality upheld by conservative risk profiling. The rating is however constrained by concentration in its loan book which makes it vulnerable to a few obligors, concentrated funding base and the challenges we expect the bank to face following its recent transition from a merchant bank in July 2024 to a commercial bank in an oligopolistic commercial banking segment. We have also assigned a “3” ESG score reflecting our view that environmental, social and governance issues have a material impact on the risk profile of the Bank.