Safwa Islamic Bank – Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Safwa Islamic Bank (SIB) at ‘BB-’ and ‘B’, respectively. The LT FCR Outlook remains Stable. At the same time, CI Ratings has affirmed SIB’s Bank Standalone Rating (BSR) of ‘bb-’ with a Stable Outlook, Core Financial Strength (CFS) rating of ‘bb’ and Extraordinary Support Level (ESL) of Moderate.

The BSR is derived from a CFS rating of ‘bb’ and an Operating Environment Risk Anchor (OPERA) of ‘bb-’ (indicating moderate risk). Although SIB’s ESL is Moderate, there is no uplift for the BSR as the latter is already at Jordan’s sovereign LT FCR level (‘BB-’/Stable).

The CFS is supported by the Bank’s significant and expanding share of Islamic banking assets and customer deposits in Jordan, as well as by its sound financing asset quality with the non-performing…