Al Baraka’s rating reaffirmed by S&P

Manama

Financial research analysts Standard & Poor’s (S&P) reaffirmed the stock rating of Bahrain-based international Islamic banking group Al Baraka Banking Group (B.S.C.) of “BB+” (long term) and “B” (Short term), while upgrading the outlook to “Stable.”

S&P commented that the banking group’s business position is “strong, reflecting superior geographic diversification in earnings compared with its peers as well as the competitive benefits it derives from its Islamic banking status.”

The bank’s strategy is driven by its growth and the risks are mitigated by the quality of management and knowledge of its key markets. S&P added that the bank’s financing book is highly granular and the group “displays resilience in its asset quality.”

Al Baraka Banking Group President and Chief Executive Adnan Ahmed Yousif said, “The rating outcome is yet another testimony to the consistent performance of our group across all these years with good asset quality and growth based upon conservative risk parameters that is so necessary in the current business and economic environment.”

The group is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group, providing its services in countries covering a population about one billion. 

Al Baraka Banking Group is jointly rated “BBB+” (long term) / “A3” (short term) on the international scale and “A+” (bh) (long term) / “A2” (bh) (short term) on the national scale with a “Stable” outlook by Islamic International Rating Agency  and Dagong Global Credit Rating Company Limited, respectively. 

The group offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shariya. The authorized capital of Al Baraka is $1.5 billion, while its total equity is at about $2bn.