Arab Banking Corporation’s Outlook Revised to Stable; Ratings Affirmed

Ref: B H 0 04 20 PBK 00-01 1 September 2020

Arab Banking Corporation’s Outlook Revised to Stable; Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) and Bank Standalone Rating (BSR) of Arab Banking Corporation (ABC) to Stable from Negative . At the same time, CI Ratings has affirmed the Bank’s LT FCR and S hort-Term Foreign Cu r rency Rating (ST FCR ) at ‘BBB+’ and ‘A2’, respectively. The BSR was also affirmed at ‘bbb’.

The revision of the Outlook for the LT FCR and BSR reflects CI’s expectation that the impact of the deterioration in the operating environment on ABC’s credit risk profile will be more l imited than previously enivsaged despite the net loss recorded in H1 20. O ur baseline assumption for Covid-19 is that the pandemic continues to represent a temporary – but…