IIRA affirms its BBB+ rating on Al Baraka Banking Group
The Islamic International Rating Agency (IIRA) has assigned its BBB+ investment scale ratings to Al Baraka Banking Group (ABG) with a stable outlook.
In a statement, IIRA stated that its assessment of ABGs depositary score falls in the range of 76‐80, reflecting strong trustee standards, wherein the rights of various stakeholders are well defined and protected.
However, IIRA noted that the economic landscape in the host countries of the key units of the ABG presents a difficult operating environment, worsened by geopolitical risks and pressure on emerging market currencies.
The prolonged adverse currency movements in ABGs operations in countries like Turkey and Jordan may affect the lenders growth trends and internal capital generation over the next 12‐24 months.
Adnan Ahmed Yousif, President & Chief Executive of ABG, said that the investment grade rating by IIRA represents the consistent performance that ABG has had despite the difficult conditions that have beset regional and international markets.
The banks Shariah governance (SG) infrastructure benefits from the strong regulatory supervision of the Central Bank of Bahrain (CBB), which has put in place specialised rules & regulations for local Islamic banks under the SG Module.