S&P puts Al Baraka on watch

Standard & Poor's said that it placed the BBB- long-term and A-3 short-term counterparty credit ratings on Al Baraka Banking Group BSC on CreditWatch with negative implications.

The CreditWatch placement follows rating actions taken on Tunisia, Egypt, Jordan and Bahrain, in which the group operates, S&P said.

"Although we consider the group's geographical diversification to be above the average for the region, it is vulnerable to a combined shock in these markets," S& P's credit analyst Paul-Henri Pruvost said in a news release.

The current turmoil could materially weaken the group's operating environment and, in turn, lead to asset quality and profitability deterioration, the agency added.

The CreditWatch placement reflects the uncertainties surrounding the impact of the unstable political environment, S&P said.

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