Rating Release
Agusto & Co. affirms the ‘Bbb’ rating assigned to Nova Merchant Bank Limited, with a stable outlook
The rating expires on 30 June 2024.
Agusto & Co. hereby affirms the “Bbb” rating assigned to Nova Merchant Bank Limited (“Nova MB” or “the Bank”) on the back of its improved profitability, good capitalisation and low level of impaired credits, notwithstanding the prevailing regulatory and macroeconomic headwinds. However, the rating was suppressed by the loan book concentration, high funding costs and concentrated deposit base. We have also assigned a “3” ESG Score reflecting our view that environmental, social and governance issues have a material impact on the rating assigned to the Bank.