Fitch lifts Arab Banking, BBK

Fitch Ratings said it upgraded Arab Banking Corp.'s long-term issuer default rating to BBB- from BB+ and its viability rating to BBB- from BB+.

The agency also said it upgraded BBK BSC's long-term issuer default rating to BBB from BBB-.

Also upgraded was Arab Banking's short-term issuer default rating to F3 from B, viability rating to BBB- from BB+, senior unsecured debt to BBB- from BB+ and subordinated debt to BB+ from BB.

BBK's senior unsecured debt also was upgraded to BBB from BBB- and subordinated debt to BBB- from BB+.

The upgrades reflect the bank's improved funding profile, continued resilient operating performance, strong capitalization and healthy asset quality, Fitch said.

Both banks are leading retail and commercial banks in Bahrain, with similar market shares and large government stakes, the agency said. Therefore, the Bahraini sovereign support assumptions of both banks have now been aligned, Fitch said.

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