The US rating agency determined that the state bank has “a solid and recognized business platform” at the country level.
The American credit rating agency Moody’s Corporation assigned to Bank of the Eastern Republic of Uruguay (BROU) the highest long-term rating in its history for its deposits in national and foreign currency after determining that the state bank has “a solid and recognized business platform” at the country level.
Since June 2014, the BROU maintained its Baa2 rating unchanged, however, on March 21, the North American rating agency prepared a report in which the state bank achieved the rating Baa1 with stable perspective.
In the document, they assure that “in its role as the dominant financial entity in UruguayBROU has a solid and recognized business platform, providing banking services to a wide range of clients, from large corporations to small and medium-sized businesses, as well as individuals.”
In that sense, they noted that this reflected “the bank’s preeminence in the loan and deposit market, as well as its varied income composition.”
Likewise, BROU’s base risk rating also rose, going from Baa3 to Baa2mainly due to “the improvement of the macro profile of Uruguay” and “the bank’s strong retail deposit base and good liquidity metrics reported by BROU in recent months, supported by the bank’s product diversity and entrenched market position. The bank’s capitalization also constitutes a credit strength, which provides additional protection against possible credit losses.”
“Everything is an achievement for Uruguay”
For his part, the president of BROU, Salvador Ferrerstated in a statement that the public bank is “adding recognitions that speak very well of how, by working as a team, we can achieve greater and greater goals” and valued the news as “an achievement of Uruguay all”.
“A stronger and more prestigious bank generates greater opportunities to boost activity and also to support sectors that face challenges,” he concluded.
Source: Ambito
