MANAMA, 21 February 2008 — Standard & Poor’s Ratings Services said yesterday that it had assigned its “A” preliminary credit rating to the floating-rate trust certificates to be issued by CBB International Sukuk Company.
The “A” preliminary credit rating reflects information and legal opinion available as of Feb. 19, 2008. Subsequent information and legal opinion may result in the assignment of a final rating that differs from the preliminary rating.
Under this transaction, CBB International Sukuk Company will issue floating-rate trust certificates (sukuk al-ijara). The rating on the certificates is equal to, and is fully reliant on, the support of the Kingdom of Bahrain (A/Stable/A-1).
The equalization of the rating on the sukuk with the rating on Bahrain is based on the ownership of CBB International Sukuk Company by the Central Bank of Bahrain and the willingness of Bahrain to develop the Islamic finance market by raising funds under Shariah compliant terms. It is further supported by the strong incentive for Bahrain to treat its own obligations under this transaction pari passu with its other obligations, including rated conventional debt, and to consider the performance of the certificates as being equally important as the performance of its own rated debt.
