ABA Bank boosted on back of Dagong credit rating

The central branch of ABA Bank in Phnom Penh. Photo supplied
The central branch of ABA Bank in Phnom Penh. Photo supplied

ABA Bank boosted on back of Dagong credit rating

Last month, ABA Bank became the first bank in Cambodia to be rated by the Hong Kong arm of China’s Dagong Global Credit Rating Agency. Zhiger Atchabarov, chief international operations officer at ABA Bank, spoke to Post Supplement about the significance of the rating.

ABA Bank has already received a rating from Standard & Poor’s. How important is the ‘B+’ credit rating handed down from Dagong?
Indeed, this is very significant and important for us. It is not only making ABA the first bank rated by Dagong, but also the first and only Cambodian bank rated ‘B+’, which is one notch above the Cambodian sovereign rating. It is worth noting here that ABA’s standalone rating is ‘B’, and it was upgraded to ‘B+’ because of comprehensive support and strong commitment from our major shareholder – National Bank of Canada.

What underpinned ABA Bank’s decision to assign Dagong to assess the company?
Since ABA is operating in Asia, it was logical to obtain rating from an Asian rating agency. Dagong is the first and only global rating agency with Asian/Chinese origin. In addition to China, it is also licensed by authorities in Hong Kong and EU. Of course, we have been comparing different agencies, but finally selected Dagong and were not disappointed – their team of analysts who visited ABA during the due diligence process was very professional, experienced and demonstrated high awareness and understanding of Asian markets, Cambodian operating environment and banking practice in general.

What advantages does a rating from Dagong provide for ABA Bank?
First of all, the rating we received from Dagong is a huge advantage itself. ABA Bank is closely cooperating with different banks and financial institutions all over the world. This cooperation includes correspondent banking, trade finance, money transfers, borrowings and other transactions on international markets. Needless to say that the more credible a bank is, the more favorable conditions it gets on all these transactions. As result, we may offer better conditions to our customers, who are always our top priority. '

For the due diligence from Dagong, which we have successfully passed, I could say that this is a clear evidence of transparency and efficiency of our business processes and corporate governance. Thus, the credit rating from Dagong may act as an indicator of our strong position, high creditworthiness and confidence in our strategy, and we hope it will bring more confidence to our partners and customers as well.

MOST VIEWED

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • Protests planned in New York as Hun Sen to attend the UN

    Prime Minister Hun Sen will speak at the United Nations General Assembly in New York this week. But US-based supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) plan to throw eggs at his car as part of a series of protests to coincide

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune