S&P reaffirms Bangladesh’s rating with stable outlook

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S&P reaffirms Bangladesh’s rating with stable outlook
« on: June 04, 2013, 01:44:37 PM »
S&P reaffirms Bangladesh’s rating with stable outlook

Standard and Poor’s in its annual rating review reaffirmed the BB- rating for Bangladesh and also kept its ‘stable outlook’ for the fourth consecutive year, reports UNB.

An S&Ps press statement says that on May 30, the Standard and Poor’s had its annual rating review for Bangladesh that mentioned “The stable outlook on the long-term rating reflects strong growth prospects and ongoing donor support, which ensure low-cost and long-maturity external debt and minimize refinancing risk. These factors are balanced against lingering fiscal and inflation risks, and the impact that rising political disturbances related to the coming elections could have on the real economy”.

According to a Bangladesh Bank release, Bangladesh is rated second highest in South Asia behind India (BBB-) and ahead of Sri Lanka (B+) and Pakistan (B-). Other countries in the BB- category along with Bangladesh include Vietnam, Mongolia and Nigeria.

S&P visited Bangladesh on February 25-28, 2013. Their meetings began with a three-hour discussion on the economy at Bangladesh Bank chaired by Governor Dr. Atiur Rahman and was based on a detailed economic update presented by Bangladesh Bank chief economist Dr. Hassan Zaman.

S&P also met with senior officials of Ministry of Finance as well as NBR. S&P also had detailed discussions with international organizations like IMF, foreign diplomatic missions, management of a large commercial bank, independent economic and political analysts, and visited export oriented footwear factory and multinational organization having FDI in Bangladesh.

These meetings were coordinated by Bangladesh Bank and facilitated by sovereign rating advisers at Standard Chartered Bank and The Hong Kong and Shanghai Banking Corporation (HSBC) Limited.