Dagong Global Credit Rating Company Limited (Dagong) and Islamic International Rating Agency (IIRA) jointly reaffirm ABGs rating and upgrade its outlook
25 October 2017
Al Baraka Banking Group (ABG), Bahrain is pleased to announce that Dagong Global Credit Rating Company Limited (Dagong) and Islamic International Rating Agency (IIRA) have together reaffirmed the international investment grade credit rating of ABG at BBB+/A3 (Triple B Plus / A Three) and raised its outlook to Stable from Negative. In addition, IIRA has reaffirmed ABG's national scale rating at A+(bh)/A2(bh) (Single A Plus / A Two). The ratings reflect the comprehensive analysis of the Groups repayment environment, wealth creation capability, repayment sources and repayment capability.
IIRA has also re-confirmed the groups overall fiduciary score in the range of 76-80, which indicates strong fiduciary standards and a well-developed matured governance structure, wherein rights of various stakeholders are well defined and protected. The fiduciary score is an aggregation of scores assigned to its three sub-sections, namely Corporate and Sharia Governance as well as Asset Manager Quality.
The rating has highlighted ABGs significant improvement in capitalization subsequent to the recent tier 1 Sukuk issuance this year. Likewise, the rating underlined the stability of the Groups solvency and liquidity and the strength of its overall wealth creation ability, benefiting from its diversified presence and market pioneering and competitive position supporting the Groupâ€™s long-term stability.
The rating emphasizes that ABGs overall risk profile currently remains sound. The rating further takes note of the comprehensive measures, being undertaken by the Group across its subsidiaries, and which are expected to help further strengthening its overall risk management system in the coming quarters.
The overall fiduciary score assigned to ABG is very good and reflects the high standards that the Group espouses. In addition, ABG continues to benefit from regulatory supervision in Bahrain being superior to regional benchmarks. The subsidiaries of ABG are individually regulated by their respective local banking supervisors, which act as additional oversight.
Al Baraka Banking Group (B.S.C), licensed as an Islamic wholesale bank by the Central Bank of Bahrain, is listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion.
Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2 billion. The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in fifteen countries, which in turn provide their services through over 700 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq, Saudi Arabia and Morocco, including two representative offices in Indonesia and Libya.