Fitch upgrades Bank ABC's long-term IDR
Bahrain - Bank ABC (Arab Banking Corporation), a leading international bank based in Bahrain, announced yesterday that Fitch Ratings has upgraded its Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'BB+' and its Viability Rating (VR) to 'bbb-' from 'bb+', with a 'Stable' outlook.
The upgrade means Bank ABC now holds investment grade ratings from both major global agencies, with S&P also maintaining its 'BBB-' rating with a 'Stable' outlook.
Fitch cited Bank ABC's strengthened risk profile, diversified international operations, and robust capital and liquidity as key factors. The agency also highlighted the bank's prudent risk management and strategic shift toward lower-risk markets.
Fitch noted the bank's 'regional corporate franchise and wide geographical diversification' as significant strengths, alongside 'well-managed market risks, adequate capitalisation, stable asset quality, funding and liquidity.' The agency also acknowledged improvements in the bank's operating environment and consistent performance across core markets.
Crucially, Fitch reaffirmed that Bank ABC's rating is 'not constrained by Bahrain's sovereign rating', underscoring the strength and independence of the bank's international funding and offshore liquidity profile.
Bank ABC group chief executive Sael Al Waary called the upgrade 'a major achievement for Bank ABC and a strong endorsement of our strategic execution and vision.' He added that it 'reinforces Bank ABC's strengths, enhances access to a wider investor and funding base, and reflects the competitive advantages of our international franchise.'
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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