BAHRAIN, 24 December 2007 — Credit rating agency Moody’s has updated their credit analysis report on BBK and maintained the bank’s credit ratings at local currency deposits A2, Long-term foreign currency deposits A2/P-1 and BFSR C-, with a stable outlook.
In maintaining the bank’s ratings, Moody’s has taken into account the bank’s robust profitability, capitalization metrics and a relatively strong franchise value based on its defensible market positions in commercial banking in Bahrain, along with its sound corporate governance practices and adequate risk management processes.
In analyzing the bank, Moody’s have also factored the possible impact from the bank’s investment portfolio which is being affected by the current turmoil in the financial markets, taking comfort from the modest size of this portfolio and the bank’s strong underlying profitability and capitalization profile. The small size of the Bahrain market and relatively modest contribution from retail banking to the overall earnings mix has also been considered.
Commenting on the rating agency’s report on BBK, the bank’s acting General Manager, A.Karim Bucheery, said “We are pleased that Moody’s has maintained BBK’s credit ratings given the current environment. The bank is a premier commercial bank in the country and its core profitability continues to remain strong, with most business indicators showing an encouraging trend. The bank is well under way in implementing its current corporate strategy which would further enhance its franchise and market position”.
He added that “during the year, the bank has infused additional capital through $275 million subordinated debt issue and BD50 million rights offering, and is well capitalized to finance its growth strategy”.
