The Bahrain based lender has operations geographically spread across 16 jurisdictions.
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 ABG’s 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 ABG’s operations in countries like Turkey and Jordan may affect the lender’s 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 bank’s Shari’ah 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.