S&P: Al Baraka to negative

Standard & Poor’s said it revised the outlook on Al Baraka Banking Group BSC to negative from stable.

The agency also said it affirmed the bank’s BB+ long-term and B short-term counterparty credit ratings.

The outlook revision reflects a view that the group’s financial profile could be negatively affected by the less-supportive operating environment in some of its key markets, specifically Turkey, S&P said.

As a result, the agency said it might see deterioration in the bank’s capitalization level and its asset quality indicators over the next 12 months.

The starting point for assigning the ratings on Al Baraka is its BB anchor, which is based on the economic risks in the countries in which it operates, S&P said.

Al Baraka’s business position is considered strong, reflecting the group’s superior geographic diversification in earnings compared with peers, the agency said, and the competitive benefits it derives from its status as an Islamic bank.

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