IslamicFinance.de

Capital Intelligence Ratings announced that it has downgraded the ratings of Tadhamon International Islamic Bank (TIIB), based in Yemen. TIIB’s Financial Strength Rating (FSR) was downgraded to 'B-' from 'B' due to the extremely challenging local operating environment and the attendant risk to the Bank’s financials, and continued pressure on earnings and associated volatility. The Bank’s Long-Term Foreign Currency Rating (FCR) is downgraded to 'C' (from 'C+') due to sovereign risk factors and the operating environment. The Short-Term FCR is maintained at 'C'. All ratings remain on a 'Negative' Outlook.

Capital Intelligence (CI) has downgraded the ratings of Tadhamon International Islamic Bank's (TIIB), based in Sana'a, Yemen. TIIB's Financial Strength Rating (FSR) is downgraded to 'B' from 'B', and the Outlook for the FSR is downgraded to 'Negative'. The Outlook for TIIB's Foreign Currency Ratings, which are affirmed at 'C' Long-Term and 'C' Short-Term, are downgraded to 'Negative' as is the case with all CI-rated Yemeni banks, reflecting the current turmoil and severe economic weakness. The Support Rating is maintained at '4', reflecting the limited capacity of support. Non-performing loans (NPLs) and assets are expected to rise, which will require additional provisioning, thereby hitting profitability.

Tadhamon International Islamic Bank, a Sharia'a-compliant Bank licensed by the Central Bank of Yemen, has announced management changes in its investment arm in Bahrain, Tadhamon Capital BSC, by appointing Mr. Ahmed Hatam Sultan as its new Chief Executive Officer. In addition and as part of Tadhamon Capital's new changes, the company has appointed Mr. Hesham Al Gassab as the Executive Director of Investments overlooking the investment portfolio managed by the company and Mr. Maisarh Yaseen Omar as Director of the Treasury Department. Tadhamon Capital specializes in structuring and managing new investments and products across its business lines, consisting of Real Estate, Alternative Investments, Treasury & Capital Markets and Investor Relations.

The Financial Strength Rating of Tadhamon International Islamic Bank (TIIB) has been downgraded to 'b+' from 'BB-' by Capital Intelligence (CI). The downward change of the rating reflects the deterioration in TIIB's financial profile. The ratings of TIIB's Long- and Short-Term Foreign Currency are 'b-' and 'c' respectively. Weakening asset quality and a subsequent large provision charge were the reason why the bank recorded a loss last year.

It seems that things will have a positive outlook for Yemen’s Islamic banks.
When pitched battles between pro- and anti-Saleh forces erupted in downtown Sana’a, the banking sector froze.
Tadhamon International Islamic Bank and the Islamic Bank of Yemen for Finance and Investment have still 80% of the banking sector’s activities paralyzed.
The GCC deal is centered on rebuilding the country, which has been crippled by 10 months of unrest.

Tadhamon International Islamic Bank is planning o buy as much as 7 billion rials ($33 million) of sukuk when the government sells the debt this month.
The government is expected to offer 25 billion rials of sukuk in the first portion of a planned 100 billion-rial note program.