Fitch lowers TAIB Bank ratings
Dubai, December 23, 2010
Fitch Ratings has revised TAIB Bank's Long-term Issuer Default Rating to B- from B+ and its Individual Rating to D/E from D.
Its Short-term IDR of B and Support Rating of 5 have been affirmed. The outlook is stable. Fitch has simultaneously withdrawn all ratings, according to a report in our sister newspaper Gulf Daily News.
The downgrades reflect the bank's continuing losses due to declining operating revenues, high impairment charges and other provisions, and erosion of the bank's equity such that regulatory capital ratios are below the minimum requirements of the Central Bank of Bahrain.
In Fitch's opinion, it will be challenging for the bank to restore its profitability and franchise in the current operating environment.
In addition, there is a continued absence of strategic direction from its 60 per cent shareholder, Dubai Financial Group.