Dagong Global Credit Rating Company Ltd, Islamic International Rating Agency reaffirm ABGâ€™s rating
Al Baraka Banking Group, Bahrain is pleased to announce that Dagong Global Credit Rating Company Limited and Islamic International Rating Agency have together reaffirmed the international investment grade credit rating of ABG at 'BBB+/A3' (Triple B Plus / A Three) and raised its outlook to “Stable” from “Negative”.
In addition, IIRA has reaffirmed ABG's national scale rating at 'A+(bh)/A2(bh)' (Single A Plus / A Two). The ratings reflect the comprehensive analysis of the Group’s repayment environment, wealth creation capability, repayment sources and repayment capability.
IIRA has also re-confirmed the group's overall fiduciary score in the range of '76-80', which indicates strong fiduciary standards and a well-developed matured governance structure, wherein rights of various stakeholders are well defined and protected. The fiduciary score is an aggregation of scores assigned to its three sub-sections, namely Corporate and Shari'ah Governance as well as Asset Manager Quality.
The rating has highlighted ABG’s significant improvement in capitalisation subsequent to the recent Tier 1 Sukuk issuance this year. Likewise, the rating underlined the stability of the Group’s solvency and liquidity and the strength of its overall wealth creation ability, benefiting from its diversified presence and market pioneering and competitive position supporting the Group’s long-term stability.
The rating emphasises that ABG’s overall risk profile currently remains sound. The rating further takes note of the comprehensive measures, being undertaken by the Group across its subsidiaries, and which are expected to help further strengthening its overall risk management system in the coming quarters.
The overall fiduciary score assigned to ABG is very good and reflects the high standards that the Group espouses. In addition, ABG continues to benefit from regulatory supervision in Bahrain being superior to regional benchmarks. The subsidiaries of ABG are individually regulated by their respective local banking supervisors, which act as additional oversight.
Al Baraka Banking Group (B.S.C), licenced as an Islamic wholesale bank by the Central Bank of Bahrain, is listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totalling around one billion.
Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'ah. The authorised capital of Al Baraka is $1.5 billion, while total equity is at about $2 billion. The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in fifteen countries, which in turn provide their services through over 700 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq, Saudi Arabia and Morocco, including two representative offices in Indonesia and Libya.