S&P downgrades Bahrain's Al Baraka Banking Group

The Bahraini Islamic lender's short-term rating was affirmed at B

  
Al baraka Bank and Burgan Insurance offices in Beirut,Lebanon July 18, 2016. Picture taken July 18, 2016. Image for illustrative purposes.

Al baraka Bank and Burgan Insurance offices in Beirut,Lebanon July 18, 2016. Picture taken July 18, 2016. Image for illustrative purposes.

REUTERS/ Jamal Saidi

S&P Global Ratings has lowered Bahrain’s Al Baraka Banking Group’s long-term rating to BB from BB+, with a stable outlook.

“The rating reflects the agency's view that the Bahrain-based group's capitalization is now a perceived ratings weakness, owing to increased risks stemming from its large presence and operations in Turkey,” S&P said in a statement.

“The stable outlook on Al Baraka Banking Group's long-term rating reflects S&P's expectations that the lender's financial profile will continue to be broadly stable in the next 12 months,” the statement added.

The Bahraini Islamic lender’s short-term rating was affirmed at B. The group has operations in in the Middle East, Asia and Africa.

(Writing by Gerard Aoun; editing by Seban Scaria)

( gerard.aoun@refinitiv.com )

#Bahrain #S&P #Banking #Al Baraka 

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