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June 2018, No. 87


Banking

BIM Achieving the Highest National and
International Credit Rating


This is the highest credit rating which BIM has obtained among other banks as well as financial and credit institutions and insurance companies.


Bank of Industry & Mine

Bank of Industry and Mine (BIM) achieved AA+ rating at the national level indicating Long Term Financial Strength Rating, Stable Outlook and the rank A1+ for Short Term Financial Strength Rating in the field of credit capability.

According to the BIM’s Information Center, Omid Mohammad Rahimnia, the head of BIM’s  Risk Assessment and Control Department stated, “According to the report issued by Capital Intelligence, an independent acknowledged credit rating institute, on February 26, 2018 BIM managed to achieve this ranking in its third year of being evaluated.”

He added, “The bank could also achieve its previous international rating unchanged from the previous year’s rating and at the highest level of the country’s ranking indicating financial strength rating BB-, stable outlook and  support score 2. Meanwhile, BIM is the only bank successful in obtaining such a rating.”

Rahimnia stressed that this success is in line with the strategy for the development of international interactions, and it aims at achieving the stated strategies in the fourth Strategic Plan such as improving and strengthening a comprehensive risk management system, improving performance  transparency and compliance with international banking standards, expanding the network of international communications and interactions as well as the status and role of the bank at the level of agents in the country’s economic development.

The considerable points of the European institute’s recent report worthy to mention include the availability of assets of the BIM, which is relatively of higher quality compared to our country’s banking network, suitable storage of credit risk, managing the key role of BIM development as the only specialized sector of the Industry Division and thus having 100 percent government support in dealing with any financial-credit crisis, financing major infrastructure and infrastructure projects in the country for 30 years and acceptable financial ratios in the form of a development bank in spite of the lack of customers’ deposit in high volume compared to commercial banks.

Rahimnia said, “The advantages of this credit rating include providing the grounds for attracting capital from external sources at the lowest possible rate without government guarantees or in other words, facilitating access to finance in the international capital market, diversification into resources for attraction tools and resource equipment, reducing unnecessary commitments and providing fresh resources to fund projects, transparency of bank performance as well as improving the international credit of the bank and the banking system of the country.”

It should be noted that credit ratings of banks are important tools that influence the decision of real and legal stakeholders of banks both in the national and international arenas in order to facilitate the establishment of a commercial and financial relationship comfortably. In other words, the higher rank is considered to increase the competitive ability of the bank to attract diverse and cheap resources and attract investors in the international arena.

Factors such as: bank ownership structure, quality and management capability, systems and control tools used in the process of granting facilities, business operations and treasury, the business environment in which the bank operates, the country’s economic situation, the quality of bank assets, capital adequacy, liquidity and profitability are among the factors that influence the bank’s rank.

It is worth mentioning that this is the highest credit rating which BIM has obtained among other banks as well as financial and credit institutions and insurance companies.

 

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  June 2018
No. 87