IslamicFinance.de

Dagong Global Credit Rating and Islamic International Rating Agency (IIRA) have jointly maintained the ratings of AlBaraka Banking Group (ABG) at BBB+/A3. At the same time, IIRA has re-affirmed the national scale ratings of ABG at A+/A2. Outlook on the assigned ratings has been revised to 'stable' from 'negative' indicating the macroeconomic and political stability in ABG’s core countries. ABG operates through a globally diversified franchise spread across 11 jurisdictions in Europe, Africa and Asia. ABG’s ratings derive strength from the recent tier 1 Sukuk issuance this year. While the Group’s subsidiaries are individually governed by their supervisors, the Group maintains close coordination and oversight. Furthermore, Bahrain's institutional framework for Islamic banks ensures adherence to a strong framework for Shari'ah governance.

Capital Intelligence (CI) announced Bahrain-based AlBaraka Islamic Bank (AIB)'s Long and Short-Term Foreign Currency ratings at BB+ and A3 respectively. These ratings integrate a one-notch uplift on the basis of AlBaraka Banking Group (ABG) ownership, the parent, the support level being affirmed at 2.
Although it's a small bank, AIB now requests a significant market share of Islamic banking assets in Pakistan through its recent acquisition in that country.
AIB's strenghts are liquidity and capital adequacy.

The downgrade reflects Fitch's revised view of potential support from its majority shareholder, Bahrain-based Albaraka Banking Group (ABG). While Fitch believes ABG has a strong propensity to support, its ability to do so cannot be relied upon, given its structure as a group of diversified subsidiaries spread across different sub-investment grade countries and Albaraka Turk's large size relative to the group.
The 'B+' Long-term IDR reflects the bank's small size and concentration risks in its loan book, particularly in construction sector lending.