South African rating agency GCR has reviewed Victoria Commercial Bank’s (VCB) long-term national scale issuer rating to BBB-, reflecting the higher volume of non-performing loans in the banking sector arising from the manufacturing and trade sectors.
The tier-three lender whose net non-performing loan ratio stood at 4.8 percent as at June 2022, has like other banks, seen its lending to customers accelerate this year on the back of a recovering economy, straining the quality of the asset base.
