Fitch Ratings has upgraded Bank of Valletta’s Long-Term Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘ and the Viability Rating (VR) to ‘BBB’ from ‘BBB-‘. The Outlook on the Long-Term IDR is Stable. Fitch has also assigned BOV a long-term deposit rating of ‘BBB+’ and short-term deposit rating of ‘F2’.
This upgrade was announced by Fitch on Tuesday 25th March, in a statement that acknowledged “BOV’s dominant domestic franchise, which has allowed the Bank to consistently capture the profitable business opportunities offered by Malta’s benign operating environment, while maintaining adequate asset quality and capitalisation”.
Both BOV Chairman Dr Gordon Cordina and CEO Kenneth Farrugia expressed their extreme satisfaction on this announcement. Dr Cordina stated, “This upgrade by Fitch is another acknowledgement of the transformation journey that we’ve been on for the past years and is a testament to our dedication to sustain the Bank’s positive performance. This announcement enables us to look to the future with confidence and continue in our efforts to positively impact our stakeholders, shareholders and the wider community.”
CEO Kenneth Farrugia echoed the Chairman’s statement and commented, “This upgrade by Fitch Ratings is a substantial milestone for Bank of Valletta, reflecting our robust financial position and strategic vision. It follows a series of prestigious accolades we received in 2024, including an upgrade of our credit rating by Standard & Poor’s, the esteemed FHRD HR Quality Mark, two awards at the Malta Business Awards, and being named Company of the Year 2024 by the Malta Stock Exchange. These recognitions, culminating in Fitch’s upgrade, validate our sustained efforts and dedication to maintaining the Bank’s positive performance and supporting the growth of our business for the years to come.”
In the official statement, Fitch continued by saying that BOV’s ratings reflect its leading domestic franchise, which contributes to the bank’s sound earnings generation despite limited business diversification, but also its small scale and concentrated operations in a small economy. BOV’s lending standards and investment guidelines are in line with global industry practices, and its risk framework has strengthened in line with regulatory expectations.
The full report on Bank of Valletta’s upgrade can be viewed here.
