Fitch affirms Mumtalakat

Fitch Ratings said it affirmed Bahrain Mumtalakat Holding Co.’s long-term issuer default rating and senior unsecured rating at BB- and short-term issuer default rating at B.

The ratings were removed from rating watch negative (RWN).

The outlook is stable.

The ratings on Mumtalakat's euro medium-term note program and $600 million sukuk certificates due 2021 issued under Mumtalakat Sukuk Holding Co. were also affirmed at BB-. Mumtalakat Sukuk is fully owned by Mumtalakat and its obligations are direct, unconditional, unsubordinated and unsecured obligations of the latter.

Fitch said it classifies Mumtalakat as a government-related entity (GRE) of Bahrain under its GRE rating criteria and believes that extraordinary support from Bahrain (BB-/stable/B) would be forthcoming, in case of need.

The agency added that it deems the strength of linkage with Bahrain and the incentive for the latter to provide extraordinary support to Mumtalakat, in case of need, as warranting a high score of 45. This leads to an equalization of Mumtalakat's issuer default ratings with Bahrain's.

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