You are hereHome SectorsJordan
Jordan-based Arab Bank downgraded to 'BB' following sovereign downgrade
Source: Standard & Poor's Ratings Services , Author: Posted by BI-ME staff
Posted: Thu December 1, 2011 6:47 pm



Run MS Office Pro
2010 on latest Win7
Ultimate OS to
increase your
business confidence




Buy HP Pavilion
 laptop with Corsair
DDR3 RAM for
superb performance




Need a personal loan
in Dubai? Contact
Citibank UAE for all
of your banking needs

INTERNATIONAL. Standard & Poor's Ratings Services said today that it has lowered its long-term counterparty credit ratings on Jordan-based Arab Bank PLC to 'BB' from 'BB+'. The short-term counterparty credit ratings were affirmed at 'B'. The outlook is negative.
 
The rating action follows the recent negative rating action on the Hashemite Kingdom of Jordan (BB/Negative/B; for further details see "Long-Term Local-Currency Rating On Kingdom of Jordan Cut To 'BB'; Foreign-Currency Ratings Affirmed; Outlook Negative," published on Nov. 23, 2011).

The lowering of the local currency ratings is based on Standard & Poor's new sovereign criteria. Among several factors, local currency ratings can only enjoy uplift from the foreign currency ratings under an independent monetary policy with a track record of a floating exchange rate.

The Jordanian dinar (JOD), however, has been pegged to the U.S. Dollar since 1995. As a result, the local currency ratings on Jordan are equalized with the foreign currency ratings at 'BB/B'.
 
The ratings on Arab Bank PLC reflect the strengths of the Arab Bank Group (not rated) but also its incorporation in Jordan, where the bank is subject to sovereign risk. Hence, the ratings on Arab Bank PLC are constrained by the local currency ratings on the sovereign. With total assets of US$45 billion on Sept. 30, 2011, the Arab Bank Group is one of the Middle East's largest banking organizations.

Operating in 30 countries across five continents, Arab Bank Group is also one of the most geographically diversified banking groups. It deploys about 32% of its loans in Levant countries, including Jordan, and about 41% in the Gulf Cooperation Council countries.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 23, 2013
UAE. Stock market indices racing ahead but GDP figures do not support the euphoria and commodity outflows fuel the rally; Is there too much liquidity in the banking system?
date:Posted: May 23, 2013
UAE. While new orders continued to rise sharply, the rate of increase eased to the slowest in a year. Meanwhile, employment levels rose at the fastest pace in two years.
date:Posted: May 22, 2013
iNTERNATIONAL. Control over Homs will enable al Assad to rapidly move forces from the north to the south to meet emerging rebel threats. It will also provide a key avenue of retreat to the Alawite coast in the event that he needs to flee Damascus.



Wide selection of craft tools and coloured pencils will give more options to your creative side


Doing business in the Middle East? Your starting point is GulfTradeHolding, the Middle East Business Directory