BK’s long term credit rating upgraded to AA-

Bank of Kigali’s long term credit rating has been upgraded to AA, while its short term rating has been maintained at A1 by Global Credit Rating (CGR), indicating the bank’s strong performance against global economic uncertainty.The South Africa based company states that BK’s grade is “stable” and indicates a continuity of profitability and maintenance of credit protection.Last year BK’s long-term credit rating was at A+ and short term credit rating at A1.According to BK’s management, the bank’s long term credit rating reflects its strong emphasis on quality capital services.“We are pleased with the rating upgrade from CGR. This confidence in the bank against a backdrop of sluggish global economy is commendable for the bank, its investors and customers,” CEO of BK, James Gatera said.The bank states that it’s A1 short term rating is a result of excellent liquidity factors such as its timely payment of credit.Last year, the government reduced its stake in BK to 55 per cent through an Initial Public Offering (IPO) in a plan aimed to boost the bank’s capital base. The move was also in line with government’s wider strategy to by government to implement its long term privatization plan.Subsequently, the IPO achieved an over the top subscription of 274 per cent, raising US$63m (Rwf37.5b) for the bank.Other than recording a 22.7 per cent increase in its pre-tax profits in 2011, the bank also reported a slight decrease of its non-performing loans from 8.5 percent to 8.3 percent.

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BK’s long term credit rating upgraded to AA-