S&P rates Ahli United A-

Standard & Poor's said it assigned A- long-term and A-2 short-term counterparty credit ratings to Ahli United Bank BSC.

The outlook is developing.

The agency said the ratings reflect Ahli United's leading commercial position in Bahrain, better geographic diversification than for regional peers, improving financial performance, strong asset quality and an expectation of extraordinary government support in case of need, given the bank's systemic importance stemming from its leading market position.

The ratings are constrained by the bank's capitalization, which is below that of regional peers, rapid expansion strategy and average funding profile, S&P said.

Although no transaction has been officially announced, the agency understands that Ahli United's ownership structure could change in the near term, with a potential impact on the bank's strategy and capital policy. The future direction of the ratings will also largely depend upon the bank's capitalization, as this is currently the main constraining rating factor, S&P noted.

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