Bahrain’s sovereign rating downgrade has minimal impact on Bank ABC

SourceBizbahrain
SectorFinancial Services
CountryBahrain

Bank ABC, headquartered in Bahrain and one of MENA’s leading international banks has announced that the technical rating action due to Fitch Ratings’ downgrade of Bahrain’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘,  will not lead to imminent pressure on the Bank’s funding or pricing, due to its resilient balance sheet position and consistent growth strategy. Bank ABC was previously rated by Fitch at BBB-, recognised to be an international wholesale bank, but noted to be at Fitch’s maximum limit of three notches above the sovereign rating. 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. However, Fitch has reaffirmed the resilience of Bank ...read more...