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

DUBAI — Standard & Poor's Ratings Services said yesterday that it assigned its 'A-' long-term and 'A-2' short-term counterparty credit ratings to Bahrain-based Ahli United Bank B.S.C. (AUB). The outlook is developing.

By A Staff Reporter

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Sat 4 Aug 2007, 8:56 AM

Last updated: Sat 4 Apr 2015, 9:20 PM

"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.

More news from