Standard & Poor’s upgrades Standard Chartered Bank to AA-
Standard Chartered Bank only major international bank to have been upgraded by all three rating agencies since the financial crisis
Hanoi, 12th December 2011 – The strength of Standard Chartered’s balance sheet, risk management approach and market position across the growing economies of Africa, Asia and the Middle East were cited by Standard & Poor’s “S&P” in its upgrade of Standard Chartered Bank from A+ to AA- on 1st December 2011.
The S&P upgrade clearly demonstrates the bank’s differentiated position versus other international banks. It reinforces the Group’s growing balance sheet, minimal wholesale funding requirements, diversified income streams and the strength of its capital and liquidity positions. Standard Chartered Bank is in a very small group of international banks to have been upgraded from S&P under the new methodology – with most institutions being downgraded or remaining the same.
Standard Chartered is also the only major international bank to have been upgraded by all three ratings agencies since the beginning of the financial crisis: by S&P to AA-; Fitch to AA-; and Moody’s (to A1).
S&P awarded notch upgrades to Standard Chartered’s ratings for:
- Strong liquidity and ‘above average’ capital – S&P commented that a notch upgrade for liquidity would only be awarded to banks in ‘exceptional’ circumstances. It cites our ‘rich liquid pool of assets’ and likelihood that we are a ‘flight to quality’ institution.
- Strong business position – S&P notes our good market positions, flexibility to play to our advantages in our markets, the strong economic growth across our markets, plus our diverse geographic revenue mix.
- Strong risk position – S&P notes our well diversified risk exposure and conservative risk appetite.
Richard Meddings, Group Finance Director, Standard Chartered said:
“S&P have recognised that we are totally different to other international banks. We’re operating in growth markets, we’ve got very diversified income, a very robust balance sheet and strong management. They are the third of the major rating agencies to upgrade us since the crisis began, while we have continued to deliver record results year in, year out.”