Manama, Bahrain: Capital Intelligence has reaffirmed its foreign currency long term and short term ratings for Arab Banking Corporation at A- / A2 with a "stable" outlook. ABC's support rating has been raised from 2 to 1.
Capital Intelligence commented in its report that these rating actions were driven by ABC’s “sound loan quality”; “improving net interest income and fee and commission income”; “strong regional wholesale and project finance franchise”; and its “exceptionally supportive sovereign shareholders”.
Commenting on this, Mr. Hassan A. Juma, President & Chief Executive of ABC said, “The ratings affirmation and support rating upgrade by Capital Intelligence reflect the increasing strength and value seen in ABC’s franchise, despite the setbacks that have occurred over the past year as a result of the credit crunch and the associated deterioration of international financial markets. ABC’s shareholders demonstrated their full support in the speedy conclusion of the US$1.11 billion capital increase through a priority rights issue, completed in June 2008.
“ABC’s core businesses – project and structured finance, trade finance and forfaiting, Islamic banking, corporate and institutional banking, retail and small business banking, and treasury activities – continue to demonstrate their profitability and vigour.”
About Arab Banking Corporation
Arab Banking Corporation was incorporated as a Bahrain joint stock company in 1980 by Amiri decree in the Kingdom of Bahrain. ABC is listed on the Bahrain stock exchange.
ABC offers a wide range of banking products including trade finance and forfaiting, project and structured finance, syndications, corporate and institutional banking, treasury services, investment banking, Islamic banking and retail banking in the Arab world.
ABC's strategy of diversified growth led to the development of its widespread network of branches, representative offices, subsidiaries and affiliates in Arab world countries and international financial centres, including London, Paris, Milan, Frankfurt, Madrid, Stockholm, New York, Grand Cayman, Sao Paolo, Singapore, Tripoli, Tunis, Algiers, Egypt, Bahrain, Istanbul, Beirut, Abu Dhabi, Tehran, Amman and Baghdad.