Al Baraka Islamic Bank – LT FCR Lowered following Bahrain Sovereign Rating Action

8 April 2026

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered the Long-Term Foreign Currency Rating (LT FCR) of Al Baraka Islamic Bank (AIB or the Bank) to ‘B-’ from ‘B’. The Short-Term Foreign Currency Rating (ST FCR) of ‘B’ is maintained. At the same time, CI Ratings has affirmed AIB’s Bank Standalone Rating (BSR) of ‘b-’ and Core Financial Strength (CFS) rating of ‘b-’. The Extraordinary Support Level (ESL) is lowered to Uncertain from Moderate. The Outlook for the ratings is Stable.

The rating action follows the recent downgrade of Bahrain’s LT FCR to ‘B’ from ‘B+’, and the revision of the Outlook on the sovereign rating to Stable from Negative. The lowering of the sovereign rating reflects the ongoing deterioration in Bahrain’s public finances, with the budget deficit and government debt burden already at very high levels, and rising refinancing risks. As indicated by the sovereign rating, Bahrain’s…