Mubasher: Moody's Investors Service has downgraded to B2 from B1 the long-term local currency deposit ratings of Bank of Bahrain and Kuwait (BBK), National Bank of Bahrain (NBB), Bahrain Islamic Bank (BISB), and Khaleeji Commercial Bank (KHCB).

The outlook on the long term deposit and issuer ratings for all banks remains negative in line with 
the negative outlook assigned to Bahrain's B2 issuer rating, the ratings agency said in a report on Monday.

At the same time, Moody's has downgraded to B3 from B2 the long-term foreign currency deposit ratings of BBK and NBB and long-term foreign currency issuer ratings of BISB and KHCB, which is the same level as the country ceiling for foreign currency deposits.

Moody's has also downgraded the baseline credit assessments (BCAs) of NBB, BBK and KHCB to b2 from b1 and affirmed the BCA of BISB at b2.

The ratings are driven by Moody's downgrade of the Government of Bahrain's issuer rating to B2 from B1 
with negative outlook, the report explained.