Bahrain's Ahli United says S&P confirms stable ratings

RATINGS AFFIRMED: Bahrain-based Ahli United Bank says it Long Term Issue Credit Rating has been affirmed at A- (stable) by S&P. (Getty Images)

Ahli United Bank (AUB) B.S.C said on Saturday that the bank's Long Term Issue Credit Rating has been affirmed at 'A-' (stable) by ratings agency Standard and Poor's (S&P).

The S&P announcement complements AUB's other long term ratings from Fitch Ratings (A- Stable) and Capital Intelligence (A Stable).

In a report issued in April, S&P said: "The ratings on Bahrain-based Ahli United Bank B.S.C. (AUB) reflect its leading commercial position in the Kingdom of Bahrain (A/Stable/ A-1), better geographic diversification than for regional peers, and strong asset quality indicators."

S&P went on to state: "AUB is among the 20 largest banking groups in the Gulf. It is also one of the very few players to have good geographic diversification, although this creates additional challenges for risk management and operating efficiency.

''The group's adequate enterprise risk management - in our assessment - and proven ability to integrate acquisitions nevertheless positions it well to handle these challenges."

S&P noted: "The bank's asset quality indicators remain strong, with a ratio of nonperforming loans (NPLs) to total loans of 1.9% at year-end 2008. Coverage of problem loans is adequate at 111.5% on the same date."

AUB's businesses consist of the core operation in Bahrain and a network of subsidiary and managed associate banks in Kuwait, Qatar, Oman, Egypt, Iraq and the UK. For 2008, AUB reported a consolidated net profit of $255.7 million.

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