Fitch Rating has affirmed JSC Basisbank's (Basis) Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook and Viability Rating (VR) at 'b+'.
According to Fitch, the core driver for affirming positive rating is Bank’s consistent, reasonable and sustainable growth.
Fitch focused on positive drivers, which ultimately ensure Bank’s strong financial and credit standing. Those positive drivers included, both elements pertaining operating environment, in particular, increase of 2022 GDP growth forecast from 3.2% to 5.8% (Fitch), and the results of the consistent and sustainable expansion policy, implemented by the Bank:
Economic environment remains the key risk factor. Operating environment in Georgia is sensitive towards external shocks, which increases pressure on banking sector.
Despite the challenges, strong legislative and regulatory base serves as a buffer that reduces pressure coming from operating environment and mitigates risks, ensuring sustainability and stability of the Georgian financial market.
Basis Bank remains committed to its’ endeavor on improving market standing and forecasts future improvements of the Credit Rating.
(Ad)