Manama – Mubasher: Standard and Poor’s said, in a report issued Thursday it revised the outlook for Bahrain’s Al Baraka Banking Group B.S.C. to ‘Stable’ from ‘Negative’, affirming the 'BB+' long-term and 'B' short-term counterparty credit ratings on the bank.
The global ratings agency also said it expects Al Baraka Banking Group capitalization to improve, adding that it sees less pressure in the operating environments of some of the group's major subsidiaries.
The stable outlook mirrors expectations that the bank will maintain a risk-adjusted capital ratio above 5% in the next 12-18 months, as well as the lower pressure in the operating environments of some of ABG's major subsidiaries, according to S&P.
“We view the group's business position as strong, reflecting its superior geographic diversification in earnings compared with peers', as well as the competitive benefits it derives from its Islamic status,” said S&P.