Rating Release
Agusto & Co. affirms the ‘Bbb’ rating assigned to Nova Merchant Bank Limited, with a stable outlook
The rating expires on 30 June 2023.
The ‘Bbb’ rating assigned to Nova Merchant Bank Limited (“Nova MB” or “the Bank”) reflects its good capitalisation, good liquidity profile, low level of impaired credits and experienced leadership team. However, the rating is constrained by concentration in the loan book of the Bank, subdued profitability, high funding costs, unfavourable regulations and the prevailing macroeconomic headwinds. We have also assigned an ESG Score of “3” which reflects our view that environmental, social and governance issues have a material impact on the rating assigned to the Bank.
