Moody's downgrades three Bahraini banks' ratings to Baa3/Prime-3, negative outlook

Moody's Investors Service has today downgraded to Baa3/Prime-3 from Baa2/Prime-2 the deposit, issuer and senior unsecured debt ratings of three Bahraini Banks: BBK B.S.C., National Bank of Bahrain BSC, and Bahrain Development Bank B.S.C. Concurrently, Moody's downgraded the baseline credit assessments (BCAs) of BBK and National Bank of Bahrain to ba1 from baa3. These actions follow Moody's downgrade of Bahrain's government bond ratings to Baa3 from Baa2 on 16 April 2015 and reflect (1) the government's reduced capacity of support, and (2) the challenges in view of weaker economic growth. The negative outlooks assigned to the Baa3 long-term ratings of the three banks are aligned with the negative outlook on the government's Baa3 bond rating.

BBK contributes to Philanthropic and development societies in Bahrain

In line with BBK’s strategic initiatives for a brighter community, Dr. Jamal Hijris- General Manager- Support Group welcomed at the Bank’s Headquarters, representatives from various societies dedicated to the philanthropic and development work to receive BBK’s contributions for their requests. The entities that have benefited from the BBK support totaling BD12,500 are: Al Noor Charity Welfare, Drug recovery association and Bahrain Philanthropic and Social Work Society. Troughout the years, BBK has supported entities including major clubs, charity funds and social initiatives. These initiatives are aimed at achieving the sole goal and vision of a brighter future and community in the Kingdom of Bahrain.

Moody's takes actions on four Bahraini banks

Moody's Investors Service has today taken actions on National Bank of Bahrain, BBK, BMI Bank and Bahrain Islamic Bank. The ratings agency has confirmed that National Bank of Bahrain (NBB) and BBK received Baa2/Prime-2 deposit and senior debt ratings, with a negative outlook. Regarding BMI Bank, Moody's has extended the review for downgrade on the bank's Ba1 deposit rating, and affirmed the bank's standalone E+ bank financial strength rating (BFSR) with a stable outlook, equivalent to a baseline credit assessment of b1. In addition to these actions, Moody's has also extended the review for downgrade on all the ratings of Bahrain Islamic Bank (BIsB) to reflect its extensive capital needs and ongoing uncertainties around the recapitalisation of the bank.

Top Bahraini banks face possible downgrade

Moody's Investors Service said it has placed four Bahraini banks - National Bank of Bahrain (NBB), BBK, BMI Bank and Bahrain Islamic Bank (BIsB) - on review for possible downgrade of its deposit, issuer and senior debt ratings. As part of the same rating action, Moody's has also placed on review for downgrade the standalone bank financial strength rating (BFSR) of BIsB. Moody's decision comes following the potential weakening in the sovereign's capacity to provide support to the banks, as signaled by the agency's decision to place the Baa1 Bahraini government bond rating on review for possible downgrade. The sovereign review was prompted by the fiscal implications of Bahrain's high and rising break-even oil price; the outlook for lower trend economic growth in the country over the medium term and the impact of a low-growth, high government expenditure and weaker oil price scenario on Bahrain's long-term debt sustainability.

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