IIRA reaffirms ABG ratings, upgrades Fiduciary Score

Islamic International Rating Agency (IIRA) has reaffirmed the international scale credit ratings assigned to Al Baraka Banking Group (ABG) at BBB+ / A3 (long term / short term) and maintained the Outlook on its assigned ratings at “Stable”. IIRA also reaffirmed the national scale ratings of ABG at A+ (bh) / A2 (bh) with a Stable outlook.

The group’s fiduciary score has also been raised to the higher level of “81-85”, the highest among the Islamic Financial Institutions in the region. The IIRA report recognised the substantial contribution in aggregate assets and earnings of the Group’s four key subsidiary banks based in Turkey, Jordan, Egypt and Algeria.

IIRA said that the Group benefits from a wide geographic diversification with most jurisdictions possessing a low economic correlation, thereby improving the overall risk metrics. IIRA further commended the stable and cost-effective sources of liquidity of the units of the Group.

Adnan Ahmed Yousif, President & Chief Executive of ABG stated, “The reaffirmation of the ratings is yet another endorsement of ABG’s consistent performance.” The report added, “The Group continues to benefit from the strong regulatory supervision of the Central Bank of Bahrain, which has put in place specialised rules and regulations for Islamic banks”.