IIRA Reaffirms Ratings of Bahrain Islamic Bank

Islamic International Rating Agency (IIRA) has reaffirmed ratings of Bahrain Islamic Bank (BIsB) at BBB/A2 on the national scale and BBB-/A3 on the international scale. Outlook on the ratings is 'Stable'. IIRA has also reassessed BIsB's fiduciary score at '65-70'. There has been gradual improvement in the bank's funding access, as well as an improved earning capacity. Meanwhile, the bank has maintained strong control on operating expenses, which is beginning to reflect in overall profitability. However, prior year losses have depleted equity levels and recapitalization is required not only to financially reinforce the bank, but also to benefit from a growing market and expand business operations.