Rating Release

Agusto & Co. affirms the ‘Bbb’ (long term) and ‘A2’ (short term) ratings assigned to Nova Bank Limited, with a negative outlook 

The rating expires on 30 June 2027. 

Agusto & Co. affirms the “Bbb” (long term) and “A2” (short term) ratings assigned to Nova Bank Limited (“Nova Bank” or “the Bank”), reflecting the strong capitalisation and good liquidity profile. However, the ratings are constrained by weak asset quality reflected in rising level of delinquent loans, weak profitability, high turnover at the senior management level and concentration in the loan book and deposit base. A “3” ESG score has also been assigned to the ratings, reflecting our view that environmental, social and governance issues have a material impact on the risk profile of the Bank.

We have assigned a negative outlook to the ratings, as the Bank continues to grapple with elevated impaired loans and the challenges associated with transition to commercial banking.