Islamic International Rating Agency Assigns Investment Grade Rating to Al Baraka Banking Group
Manama ___ October 2018: Al Baraka Banking Group (ABG), the Bahrain based international Islamic banking group announced that Islamic International Rating Agency (IIRA) has assigned it the investment grade rating of BBB+ (Long Term) / A3 (Short Term) ratings with a Stable Outlook. The rating report recognized ABG's widely diversified presence in the MENA, Turkey, South Africa and Asia along with strong and well-reputed local partners in its subsidiaries which served to offset the systemic risks that some of the jurisdictions of the group were exposed to.
IIRA further added that the Group derives considerable benefits from its strong franchise in the local deposit markets of the jurisdictions where it is present, to provide a stable and cost effective source of liquidity. In these times of challenging conditions, ABG is adequately buffered by provisions and collaterals, which have mitigated the risks to a large extent. The Additional Tier 1 Sukuk issued last year has further bolstered the capital of the Group and enhanced its loss-absorption capabilities.
IIRA also assigned the Group a Fiduciary score (a measure of the Asset Manager Quality, Corporate Governance and Shari'a Governance) of 76-80, which indicates strong standards and endorses the Group's robust corporate governance and Shari'a practices whilst protecting the rights of the stakeholders and delivering a consistent performance.
Shaikh Saleh Kamel, the Chairman of ABG, commented that the Group has over the years matured into a top class institution that strictly abides with the principles of Shari'a, and at the same time, provides a wide range of services to all sections of society. This reflects the true ideals of the Islamic banking philosophy that has come to be recognized in the regional and international markets.
Mr. Adnan Ahmed Yousif, President & Chief Executive of ABG, said: "The investment grade rating by IIRA represents a further endorsement of the consistent performance that ABG has had for yet another year, despite the difficult conditions that have beset regional and international markets. The strong internal business and operation ethos in the Group is adequately demonstrated by the efficient business model and the proficient corporate governance methodologies that have over the years produced an excellent performance"
Notes for Media:
Al Baraka Banking Group B.S.C. ("ABG") is licensed as an Islamic wholesale bank by the Central Bank of Bahrain and 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 totalling around one billion.
ABG and its Units offer retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of ABG is US$ 2.5 billion.
ABG has a wide geographical presence in the form of subsidiary banking units and representative offices in 16 countries, which in turn provide their services through over 695 branches. The Group has operations in Jordan, Egypt Tunis, Bahrain, Sudan, Turkey, South Africa, Algeria, Pakistan, Lebanon, Saudi Arabia, Syria and Morocco, in addition to one branch in Iraq and two representative offices in Indonesia and Libya.