Kingdom of Bahrain's proposed Sukuk trust certificates assigned 'BB-' prelim rating
The latest from S&P.
S&P Global Ratings today assigned its preliminary 'BB-' long-term foreign currency rating to the planned US dollar-denominated Sukuk transaction (trust certificates) by CBB International Sukuk Company 6 S.P.C. (Bahrain Sukuk), a single-person company incorporated in the Kingdom of Bahrain.
Under the transaction documents, Bahrain Sukuk will enter, among other contracts, into an Ijarah head and sub lease agreements and Murabahah agreement (financing of a sale at a determined markup [cost plus profit margin]) with the Kingdom of Bahrain (Bahrain: BB-/Negative/B) acting through the ministry of finance.
The preliminary 'BB-' issue rating on the trust certificates reflects the rating on Bahrain because the transaction fulfils our conditions for rating Sukuk at the same level of its sponsor.