Fitch cuts Ahli United Bank to BBB-

Fitch Ratings said it downgraded Ahli United Bank BSC's long-term issuer default rating to BBB- from BBB+.

The outlook is stable.

The agency also downgraded the bank’s viability rating to bb+ from bbb and affirmed the support rating at 2.

The actions follow the March 1 downgrade of Bahrain's sovereign rating to BB- from BB+ and the revision of its country ceiling to BBB- from BBB+.

Fitch said the issuer default ratings, senior debt ratings and support rating reflect the high probability that support from Ahli United Bank’s core shareholder, the Public Institute for Social Security (PIFSS) would be provided if needed. PIFSS is an arm of the State of Kuwait (AA/Stable) and it holds an 18.7% stake in the bank.

The strong links between PIFSS and Ahli United Bank include PIFSS's strong interest as shareholder in both Ahli United Bank directly and in Ahli United Bank’s Kuwaiti subsidiary.

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