A Kenya-based financial services company’s long and short-term national scale issuer rating have been downgraded, with a stable outlook by a rating agency.
Victoria Commercial Bank’s (VCB) long-term rating has been downgraded to BBB(KE) from BBB+(KE) while the short-term rating has been lifted to A3(KE) from A2(KE).
The rating agency has downgraded VCB on a decline in asset quality largely due to the adverse impact of the Coronavirus disease 2019 (COVID-19) crisis.
VCB’s stable outlook reflects the rating agency’s expectations the competitive position, funding base, and liquidity of the bank will remain stable.
This comes after the rating agency dropped VCB’s outlook from stable to negative in 2020, due to its deteriorating asset quality metrics and earnings.