The withdrawal is at the request of Ibdar Bank (IB) and is related to the entity’s restructuring programme.
Wednesday 23, January 2019 BY KUDAKWASHE MUZORIWA
CI Ratings said that it has affirmed and concurrently withdrew Ibdar Bank’s foreign currency long and short term ratings of ‘BB’ and ‘B’.
In a statement, the rating agency stated that at the time of withdrawal the ratings were supported by the lender’s low leverage, particularly the limited borrowings in relation to total capital, the solid capital adequacy and including a high CET one component.
The main constraining factors on the rating are said to be the significant share of total assets in Bahrain, the small balance sheet and the successive net losses posted in each of the previous three years.
Additionally, the sizeable portfolio of legacy illiquid investments which generate very little income and the challenging regional economic environment also constrained the ratings.
Last year, CI assigned a stable outlook to the bank with the expectation that the lender would return to profitability in the full year 2017.
Ibdar Bank was created five years ago following the merger of three relatively small Bahrain-based Islamic investment banks (Elaf Bank, Capivest and Capital Management House). The lender had since evolved into the third largest Shari’ah compliant investment bank in Bahrain.