Bahrain’s Bank ABC plays down Fitch downgrade

SectorFinancial Services

Bank ABC has said its Fitch ratings downgrade, which followed the downgrade of Bahrain’s sovereign rating, will not lead to imminent pressure on the bank’s funding or pricing.Reuters reported on Tuesday that Bank ABC was in preliminary talks to buy Blom Bank’s Egyptian subsidiary. The Bahraini bank has a network of 28 branches spread across major cities in Egypt.Fitch announced the ratings action following the downgrading of Bahrain to B+ from BB-, meaning Bank ABC has been downgraded from BBB- to BB+.“The downgrade of Bahrain by one notch to B+ has therefore created a technical move of ABC’s rating lower to BB+, maintaining a three-notch technical limit uplift to sovereign rating,” the bank said in a press release.“However, Fitch has reaffirmed the resilience of Bank ABC. Such reaffirmation resonates with more...