Moody's Credit Rating

RNS Number:6590L
BBK (B.S.C.)
07 November 2006


To be released

7 November 2006

   BBK Rating Upgraded to A3 due to Diversified Revenues and Solid Franchise

BBK's credit rating has been upgraded to A3 by international credit rating
agency Moody's Investor Services.

The new international vote of confidence to the Bank is attributed to BBK's
diversified revenue streams, its position as a pillar in Bahrain's banking
system, as well as its innovative drive to build new competencies and accelerate
business growth in new areas and markets.
The bank's long term foreign currency deposit rating (FCDR) was awarded the
upgrade to A3 from Baa1, with a positive outlook, in October 2006. The ratings
on BBK's US$1.0 billion Medium-Term Deposit Note Programme and any debt issued
under it were also upgraded to A3 with a positive outlook.

These actions were taken after Moody's sovereign risk unit upgraded the ceiling
for foreign currency deposit ratings and the ceiling for foreign currency debt
in Bahrain to A3 and A1, respectively, on October 4, 2006.

The Moody's report also cited BBK's March issue of US$500 million in 5-year
deposit notes as one of the contributing factors to the Bank's upgrade.
The Bank's financial strength rating (FSR) is currently D+, reflecting BBK's
solid commercial banking franchise in Bahrain, as one of the top three banks in
the Kingdom.

This rating also factors in the strong performance of CrediMax, BBK's credit
card subsidiary, which is the leading credit card issuer in Bahrain and further
supports the strength of BBK's retail banking franchise.

The report noted the challenge for BBK to continue diversifying and innovating
its products to maintain its leading position, as growing competition for funds
and lending opportunities in Bahrain are fueled by the growth in Islamic banking
services.

Dr. Farid Al Mulla, GM CEO, BBK, said, "We are extremely pleased with this new
development, which is a strong signal to our clients that the Bank continues to
perform strongly and obtain the recognition of international observer agencies.
"Moody's appreciation of BBK's strong standing in and contribution to Bahrain's
banking sector further reaffirms our commitment to continuing this tradition and
evolving our business lines to achieve high shareholder value, through lower
borrowing costs and increased innovation."


                                     -Ends-

                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCFSDFSWSMSESF

Lloyds Bk. 43 (LSE:89YE)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024