S&P Affirms Bank of North Dakota Credit Rating
BISMARCK, N.D. – The Industrial Commission reports that Standard & Poor’s (S&P) affirmed Bank of
North Dakota’s (BND) credit rating as A+/Stable in its annual review released Nov. 6.
The ratings are consistent with those given by S&P in November 2022. S&P is a U.S.-based financial
services company that publishes financial research. Financial institutions are typically reviewed
annually, but S&P will review more frequently if a modification of the rating is needed.
“The review confirms the success of BND’s financial management strategy in today’s challenging
economic environment,” members of the Commission said in a joint statement. The Commission,
consisting of Gov. Doug Burgum as chairman, Attorney General Drew Wrigley and Agriculture
Commissioner Doug Goehring, oversees BND. “S&P specifically cited the strong risk-adjusted capital
(RAC) ratio at BND as being a positive factor.”
In addition to the RAC ratio, other key strengths identified in the report include stable ownership
by the state of North Dakota since 1919, strong credit quality and conservative management.
Similar to previous years, risks identified by S&P include the geographic concentration of loans in
North Dakota, lending exposure to cyclical energy and agriculture sectors, and that the Bank is
subject to annual capital transfers to the state.
“Although we are a state agency, BND operates like a local community bank, and the review confirms
that practice,” said BND President/CEO Todd Steinwand. “This banking business model serves the
state of North Dakota well, allowing it to return tax revenues to its residents through business,
agriculture and student loans to grow the economy and educate our residents.”
The full S&P report may be viewed at bnd.nd.gov.
The Bank’s mission “to support agriculture, commerce and industry” has not changed since its
earliest days in 1919. The Bank of North Dakota is the only state-owned bank in the nation.
For more information: Janel Schmitz BND Communications & Marketing Manager 328.5880
Also available at the following link: