Al Baraka Islamic Bank’s Ratings Affirmed; Outlook Revised to Negative

Ref: B H 0 01 21 CRA00-01 31 August 20 2 2

Al Baraka Islamic Bank’s Ratings Affirmed; Outlook Revised to Negative

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook for Al Baraka Islamic Bank’s (AIB) Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) to Negative from Stable. At the same time, CI has affirmed the LT FCR and Short-Term Foreign Currency Rating (ST FCR ) at ‘B+’ and ‘B’, respectively. AIB’s Bank Standalone Rating (BSR) o f ‘b’, C ore Financial Strength (C FS ) rating of ‘b’ and E xtraordinary S upport L evel (ESL) of Moderate were also affirmed .

The revision of the Outlook to Negative is underpinned by the increasingly difficult macroeconomic conditions in Pakistan alongside the elevated credit risk. AIB is significantly exposed to Pakistan almost exclusively via its foreign self-funding subsidiary…