Bahrain-headquartered global Islamic bank Al Baraka Banking Group (ABG) announced yesterday that global credit rating agency S&P has reaffirmed Al Baraka Turk Participation Bank's longterm counterparty credit rating of BB/ B short-term.
The outlook is stable.
S&P said that the ratings reflected the good track record of Al Baraka unit in the participation banking market in Turkey.
"The ABG subsidiary maintains adequate funding resources supported by a strong deposit franchise and limited market risk," the agency said.
"We expects the bank to maintain its asset quality and capitalisation at the current levels," S&P said, adding, however, that the ratings are constrained by the country rating of Turkey which is BB.
Al Baraka Turk Participation Bank is 56.6 per cent owned by the Bahrain-based Al Baraka Banking Group which has shown a strong commitment to its subsidiaries notably through ongoing capital support and risk management discipline.
"The reaffirmation of Al Baraka Turk Participation Bank's ratings has reflected the steady performance the bank has made over the years. The bank registered robust growth since its Initial Public Offering in 2007, which was oversubscribed 32 times," S&P said.
"The bank is a leader in the Turkish participation (Islamic) banking market and we expect to see more growth from the bank in years to come," the agency added.
Adnan Ahmed Yousif, the President and Chief Executive of ABG, who is also the Chairman of Al Baraka Turk Participation Bank, congratulated the management team at the bank.
Fahrettin Yahsi, board member and General Manager of Al Baraka Turk Participation Bank said that the reaffirmation of S&P has endorsed bank's excellent and strong business model of retail, SME and corporate banking covering the breadth of the country.
He added that the bank had grown remarkably over the years while serving the needs of every segment of the market and its customers well.
Last week, S&P had reaffirmed ABG's investment grade long-term counterparty credit rating of BBB- / A-3 short-term with a stable outlook. The rating has been consistent since ABG was first rated in 2007.
S&P, the reputed international rating agency completed their annual rating review recently.
"The reaffirmation of ABG's ratings yet again is a significant achievement especially during these challenging economic times in the region and in the world," said Shaikh Saleh Abdulla Al Kamel, Chairman of the bank.
"The fact that ABG has consistently achieved the reaffirmation is an indication of the success of its strategies and its resilience in weathering the adverse effects of the present conditions. It reflects the strength of the management at the head office as well as at all the subsidiaries. I am sure that the announcement will be received well by the markets as this further endorses that the ABG and its subsidiaries are strong and on the move towards expanding their presence in their markets as well as in entering new ones."
By Mahmood Rafique
© Bahrain Tribune 2010
