The release of the ratings said that the upgrade primarily reflects fresh equity injection enhancing the bank's loss absorption capacity and creating further room for growth.
The rating agency believes that the induction of the new management team and their efforts towards improvement in human resource available to the bank has perceptibly raised its staff profile, alleviating a number of concerns stemming from weak corporate governance in recent time.
However, the strengthening of Bolan's risk management capabilities is required which necessitates a significant investment in the bank's information management systems.
The bank has lagged growth in the financial sector, and will need to direct efforts at business mobilisation to improve its franchise value and the market share.
To this end, the management has devised a comprehensive business strategy, progress against which would be monitored over the rating horizon.