Fitch downgrades BBK

Fitch Ratings said it downgraded BBK's long-term issuer default ratings to BBB+ from A- and removed it from Rating Watch negative, along with its senior unsecured debt to BBB+ from A- and subordinated debt to BBB from BBB+. Its short-term issuer default rating was affirmed at F2.

The outlook is negative.

This follows the downgrade of Bahrain's sovereign ratings, Fitch said.

The ratings reflect expected support, in case of need, as there is a high probability that BBK would receive support from the Bahraini authorities if needed, given its importance to the Bahraini banking system and its 32% ownership by the Bahraini government, the agency said.

Fitch also said it affirmed Ahli United Bank BSC's long-term issuer default rating at A- and short-term issuer default rating at F2.

Gulf International Bank's long-term issuer default rating of A and short-term issuer default rating of F1 also were affirmed, the agency said.

BMB Investment Bank's long-term issuer default rating of B- and short-term issuer default rating of B are unaffected by the sovereign rating action. As a Bahraini wholesale bank, BMB's ratings do not rely on Bahraini sovereign support and are driven by its intrinsic financial strength, the agency said.

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