Fitch affirms Bank ABC’s IDR at BB+ with a stable outlook

TDT | Manama                 

The Daily Tribune – www.newsofbahrain.com

Fitch Ratings has affirmed Bank ABC’s Long-Term Issuer Default Rating (IDR) at ‘BB+’ with a ‘Stable Outlook’ in addition to its Viability Rating at ‘bb+’ driven by the Bank’s standalone strength.

The rating reaffirmation is underpinned by Bank ABC’s ‘adequate regional corporate franchise, geographical diversification, solid management, adequate capitalisation, healthy asset quality, well-managed liquidity and stable funding’ according to Fitch Ratings.

Announcing the rating, Fitch noted that Bank ABC’s risk appetite is reasonable across its diversified markets and its exposure to volatile markets is well-managed. With prudent underwriting standards, the Bank continues to focus on high-quality borrowers and short-term lending.

The Bank’s strengths are also reflected in its well-defined risk controls and healthy asset quality, with its stabilised loan quality across most of its operating environments. Sael Al Waary, Group CEO of Bank ABC, remarked: “The reaffirmation by Fitch Ratings reflects Bank ABC’s strengthened profitability, driven by the strong fundamentals that underpin our operations and the accelerated performance across our global network.”

In other highlights, Fitch Ratings observed that Bank ABC has adequate capital ratio with a common equity Tier 1 ratio of 13.7% at the end of first quarter 2023, which is well above the regulatory minimum.

Core capital accounted for a significant 84 per cent of the capital base as of end Q1 2023. Other notable strengths of the Bank include stable funding profile and strong liquidity position.