Tisco Bank gets ‘A’ TRIS rating amid ‘stable’ outlook
TRIS Rating has affirmed the company rating and the ratings of senior unsecured debentures of Tisco Bank Plc (“TISCOB”) at “A”, and has affirmed the ratings of the bank’s subordinated debentures at “A-”.
The outlook remains “stable”. The ratings reflect TISCOB’s strong competitive position in automobile hire-purchase lending and its strong capital and earnings position. However, the ratings are constrained by the bank’s small market shares in loans and deposits, concentrated loan exposure in the automobile hire-purchase loan segment, and its reliance on wholesale funding.
The “stable” outlook reflects the expectation that TISCOB will maintain its strong competitive position in automobile hire-purchase lending and a strong capital and earnings position. The rating could be revised downward in case of a sustained period of substantially weakened profitability, severe deterioration of asset quality.
The rating upgrade will depend on the bank’s ability to sustainably gain market shares, significantly diversify its loan portfolio and improve its funding capability.
