Al Baraka Islamic Bank’s Ratings Lowered ; Outlook Remains Negative
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Ref: B H 0 01 2 2 CRA00-01 31 August 20 2 3
Al Baraka Islamic Bank’s Ratings Lowered ; Outlook Remains Negative
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has lowered the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of Al Baraka Islamic Bank (AIB) to ‘B’ and ‘ b- ’, respectively , from ‘B+’ and ‘b’. The Outlook for these ratings remains Negative . At the same time, CI Ratings has affirmed AIB’s Short-Term Foreign Currency Rating a t ‘ B ’ , and lowered th e C ore F inancial S trength (CFS) rating to ‘b – ’ from ‘b’. The E xtraordinary Support Level (E SL ) of Moderate is affirmed.
The downgrade of the aforementioned ratings reflects Pakistan’s deteriorating creditworthiness and increasingly difficult economic conditions. AIB is significantly exposed to Pakistan almost exclusively via its…