The international credit rating agency Fitch has affirmed its rating of the Bank of Valletta Group at BBB+, with a stable outlook.

Fitch said it attributed its confirmation of BOV's rating to the bank's leading domestic franchise, its strong funding base and its satisfactory liquidity position, which benefits from a large and stable customer deposit base. The agency refers to BOV’s revenue-generating capacity, which has shown resilience even in a scenario of low interest rates.

Fitch said that BOV’s rating was also influenced by high industry and single-borrower credit concentrations which are derived from the small size of the Maltese economy.

Fitch said doubtful loans appear to have stabilised and are beginning to benefit from an improved provisioning policy implemented by BOV over the past two years.

BOV Chairman John Cassar White welcomed the report, saying it was an endorsement of the bank’s business model, which is based on prudent asset and liability management, and which is not dependent for its funding on volatile international money markets.

"In the coming years the bank will focus on improving its customer service, enhancing operational efficiency, and building up strong capital and liquidity buffers in line with current best international practice," the chairman added.