Global agency accords lenders credit rating boost

Global ratings agency Moody photo:courtesy

Global ratings agency Moody’s has accorded Co-operative Bank and Equity Bank first-time ratings in its latest banking sector assessment report.

 The credits the rating to both banks’ strong credit profiles, their strong loss-absorbing abilities and liquidity buffers that enable them to withstand their respective weakening asset quality in a tough operating climate.

“Moody’s has assigned first-time B1/Not Prime global local-currency deposit ratings to Equity Bank Kenya Ltd and the Co-operative Bank of Kenya Ltd,” said the ratings agency in part.

It noted that a seasonal drought had affected agriculture and power generation while elections had delayed investments and lending rate caps.

This, the agency said, had constrained banks’ flexibility to price risks. Moody’s had previously hailed the Central Bank’s tight regulatory frame work, saying such measures would weed out weaker lenders.

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