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Moody’s accords Equity Bank first-time ratings of B1, Stable Outlook
Equity Bank Kenya has been assigned first time ratings by Moody’s Investors Service with a stable outlook based on the Bank’s strength. The global local currency rating captures the Bank’s strong credit profile which is closely aligned with the B1 (stable) rating of the Kenyan government. At the same time Moody’s has assigned a national scale rating of Aa1 which ranks Equity Bank Kenya among the best credit rated bank in Kenya.
The Bank has been rated by Moody’s Investors Service as having strong brand recognition, established domestic franchise, and its extensive use of digital and alternative distribution channels which support high and resilient profitability. The Bank also has solid liquidity buffers and a resilient funding profile supported by its retail funded depositor base.
Moody’s expects that Equity Bank’s profitability metrics will remain strong, supported by its low cost funding, an increasing proportion of non-interest income, and an efficient cost structure with the extensive use of digital and alternative distribution channels.
“The rating reflects the Bank’s intrinsic credit strength, significant market size, acceptable risk management practices, profitable business model, prudent capital levels and support from its shareholders. We continue to protect ourselves against slow business volumes by focusing on high margin plays and cutting on operational and funding costs” said the Bank’s CEO Dr. James Mwangi.
