Standard Poor's Ratings Services has revised its long-term counterparty credit rating on Arcapita Bank to 'BB' from 'BB+'.

It has kept the rating on CreditWatch. At the same time, Standard Poor's affirmed its 'B' short-term rating on Arcapita.

Arcapita has reported that it is implementing a set of measures to reduce its leverage and improve its liquidity position. It has already raised $300 million through two-year facilities from strategic investors.

It has also raised $100 million of capital from a strategic shareholder in the Gulf and sold and leased-back its head office and a related piece of land in a $400 million transaction.

We believe these measures have alleviated Arcapita's immediate short-term liquidity pressure. Additional initiatives the bank reports that it will implement in the near-term include a rights issue and an extension of its debt maturity profile, the rating agency said.-TradeArabia News Service