Fitch cuts National Bank of Bahrain, BBK to BB+

Fitch Ratings said it downgraded the long-term issuer default ratings of National Bank of Bahrain BSC (NBB) and BBK B.S.C. to BB+ from BBB-.

The outlooks are stable.

The actions follow the downgrade of the Bahraini sovereign rating to BB+ from BBB-

Fitch said the downgrade reflects: (a) The downgrade of the support ratings and revision of the support rating floors, following the weakening of Bahrain's ability to support its domestic banks, as indicated by the sovereign downgrade; and (b) the downgrade of both banks' viability ratings as a result of the weakening operating environment and both banks' significant exposure to the Bahraini sovereign. In the agency’s view, it is not appropriate to assign either bank a viability rating above the Bahraini sovereign, due to both NBB and BBK being domestic banks with significant exposure to the sovereign and the domestic operating environment.

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