Capital Intelligence (CI), the international credit rating agency, has affirmed the rating for Burgan Bank’s (BB) subordinated bond issued in December 2012 at ‘BBB+’.
This rating is set one notch below the bank’s long-term foreign currency rating of ‘A-’ to reflect that the bond is a subordinated instrument.
The rating is supported by BB’s improved asset quality in recent years, comfortable liquidity, the successful Perpetual Tier 1 issue earlier this year and the very recent oversubscribed rights issue in November 2014.
The lender’s geographically diversified asset base and revenue streams are also a supporting factor to some degree.
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