Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

National Bank of Bahrain's ratings affirmed  Join our daily free Newsletter

MENAFN Press - 24/06/2011

No. of Ratings : 0
Add to Mixx!


(MENAFN Press) Capital Intelligence (CI), the international credit rating agency, announced today that it has affirmed National Bank of Bahrain (NBB)'s Long and Short-Term Foreign Currency ratings at 'BBB' and 'A2', respectively, with a 'Negative' Outlook. These ratings and outlook are set at CI's sovereign ratings for Bahrain. In April 2011, CI lowered Bahrain's sovereign ratings to 'BBB' Long-Term and 'A2' Short-Term and revised the Outlook for the ratings to 'Negative' from 'Stable'. The downgrade reflected the recent increase in political risk, which may have adverse consequences for economic growth and public finances in the near term and beyond. Although credit conditions in Bahrain have deteriorated in the current year, the Bank's Financial Strength Rating (FSR) is maintained at 'A' with a 'Stable' Outlook, on the basis of its solid capital adequacy, robust profitability, high liquidity and sound asset quality. The Support Level of '1' is affirmed in view of NBB's significant government ownership and systemic importance.

NBB commands an important position in the Bahraini banking sector, benefiting from its large domestic franchise and sizeable government ownership. Management is experienced and follows prudent risk management practices. This is evidenced by the Bank's sound asset quality ratios in spite of the increase in non-performing loans (NPLs) and restructured credits. While credit risks, particularly in the SME and retail sectors, have grown in the current year following recent political events, for NBB any future non-performing loan (NPL) growth is likely to be manageable reflecting sound systems of loan control.

The Bank's already strong liquidity rose further driven by a contraction in the loan portfolio coupled with significant customer deposits growth. Liquid asset holdings reached a record level. NBB's balance sheet remained solidly capitalised and provided ample scope for business expansion over the medium term. Profitability continued to be strong at both operating and net levels highlighting diversified sources of net interest and non-interest income combined with excellent cost control.

NBB was incorporated in 1957 as the first locally registered Bahraini bank. Operating under a retail license issued by the Central Bank of Bahrain, the Bank is 49% owned by Bahrain Mumtalakat Holding Company (Mumtalakat), the 100% state owned investment arm of the Kingdom of Bahrain. NBB offers a comprehensive range of commercial and retail banking services through its network of 25 branches throughout Bahrain. At end-December 2010, total assets amounted to BHD2.27 billion (USD6 billion) and total capital was BHD263mn (USD699mn).

About Capital Intelligence (Cyprus) Ltd.
Capital Intelligence (CI) has been providing credit analysis and ratings since 1985, and now rates over 400 Banks, Corporates and Financial Instruments (Bonds & Sukuk) in 39 countries. A specialist in emerging markets, CI's geographical coverage includes the Middle East, the wider Mediterranean region, Central and Eastern Europe, South Asia, South-East Asia, the Far East, and North and South Africa.www.ciratings.com


  MENA News Headlines

Click to Apply



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help