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Ahli United assigned 'A-/A-2' ratings

"The ratings on AUB reflect its leading commercial position in Bahrain, better geographic diversification than for regional peers, improving financial performance, and strong asset quality," said Standard & Poor's credit analyst Emmanuel Volland. "The ratings are constrained by the bank's capitalisation, which is below that of regional peers, rapid expansion strategy, and average funding profile."

The long-term rating on AUB, a government-related entity , includes a one-notch uplift above its stand-alone rating. This reflects Standard & Poor's expectation of strong likelihood of extraordinary government support in case of need, given the bank's systemic importance stemming from its leading market position. S&P classifies the Kingdom of Bahrain (A/Stable/A-1) as interventionist toward its banking sector. (This policy only applies to 'retail' banks that are considered systemically important, however).

"The developing outlook reflects potential rating actions that could be triggered by a major change in AUB's ownership," said Volland.

Although no transaction has been officially announced, Standard & Poor's understands that AUB's ownership structure could change in the near term, with a potential impact on the bank's strategy and capital policy.