Moody's may downgrade three Bahrain banks

Moody's Investors Service said it placed on review for possible downgrade the deposit ratings of three Bahraini retail banks.

National Bank of Bahrain BSC's A3 long-term local- and foreign-currency deposit ratings were placed on downgrade review, along with BMI Bank BSC's Baa3/prime-3 local- and foreign-currency deposit ratings.

Also on downgrade review includes BBK BSC's A3 long-term local- and foreign-currency deposit ratings; provisional A3 senior and provisional Baa1 subordinated ratings on its $2 billion euro-denominated medium-term note program; A3 rating on its $500 million 4.5% euro-denominated medium-term notes due 2015; Baa1 rating on its $275 million floating-rate subordinated euro-denominated medium-term notes due 2017; provisional A3 rating on its $1 billion euro-denominated deposit-note program; and the A3 rating on its $500 million euro-denominated deposit notes due 2011.

A decision to place the ratings on downgrade review follows a similar action on the sovereign rating of the Bahraini government, Moody's said.

The banks' ratings reflect government support as a key consideration, the agency said.

The downgrade review also is driven by the possibility of increased medium-term levels of economic stress in Bahrain following the outbreak of serious anti-government protests, Moody's added.

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