Standard & Poor

Albaraka Turk's proposed Sukuk Certificates assigned 'BB' Issue Rating

Standard & Poor's Ratings Services has assigned a 'BB' issue rating on proposed Sukuk certificates to be launched by Bereket Varlik Kiralama Anonim Sirketi (the issuer), a special purpose company (SPC).
The rating on the proposed certificates mainly shows Albaraka Turk's irrevocable undertaking to obtain the assets held by the issuer at the redemption date of the Sukuk at the exercise price which will be equal to the aggregate face value of certificates outstanding.
Albaraka Turk has implied that it is using this sukuk to raise funds for general purposes in accordance with Shari’ah principles.

DJ Dar Al-Arkan International Sukuk II Dar Al-Arkan retains its Standard & Poors rating

Standard & Poor's kept Al-Arkans Long-Term Corporate Rating "BB-",retaining a Stable Outlook.
The reaffirmation was given, taking in consideration that DAAR's financial performance during the second quarter improved in comparison to the first quarter in terms of margins, collection of trade receivables and operating cash flow generation.
Moreover, DAAR has managed its cash consumption during the second quarter. Account receivable balances were collected and decreased from their peak during the first quarter of 2011, by slowing down land acquisitions.

S&P : takaful insurance markets continue to grow despite operational differences

Inspite of the constant and rapid growth in the Sharia-compliant insurance markets, Standard & Poor’s Ratings Services recognizes that operational issues remain usual in the sector. This subject was heavily discussed at the International Takaful Summit, held in London on July 12/13, 2011.
Standard & Poor’s has the strong belief that while the essential Sharia-compliant operational model affords a further level of corporate governance, particularly so in those domiciles where corporate governance is poorly established, often the Sharia interpretation constitutes a more complex, and so wasteful, operational model compared with conventional insurance companies.

Sukuk bonds still in demand

In spite of the fact that the Gulf bond market remains controlled, demand is still there, especially for sharia-compliant investments. The proof comes from an oversubscribed bond offering from a small Emirati bank.
Issuance in the GCC so far this year have been largely limited to sovereigns or sovereign-backed entities. The main reasons for this are the unrest in the Middle East.
Standard & Poor’s shows that only 6% of sukuk in the first quarter of the year were from corporate.

Dubai Islamic Bank 'BBB-/A3' Ratings Affirmed Then Withdrawn At The Bank's Request; Outlook Negative

Standard & Poor's Ratings Services said today it has affirmed its 'BBB-/A-3' long- and short-term counterparty credit ratings on Dubai Islamic Bank (DIB). They have withdrawn these ratings at the bank's request. The outlook was negative at the time of the withdrawal.

S&P Report Comments On Middle East Unrest's Credit Impact On Banks And Insurers In The Region

Standard & Poor's commented today about the negative rating actions it has taken on several banks and insurance companies following sovereign rating actions in the Middle East and Africa since the unrest began: four banks in Tunisia, two banks in Egypt, two banks and one insurance company in Jordan, and four banks and three insurance companies in Bahrain.

Global standards to give breadth and depth to global Sukuk market, S&P says

The report, "Global Standards Needed To Give Breadth And Depth To Growing Sukuk Market," says that issuance reached a record high of $51.2 billion in 2010--including those issued and matured that same year.
In 2011, Standard & Poor’s believes that the depth and breadth of Sukuk issuance will continue to hinge on the extent of the global economic recovery.

Takaful International 'BBB' ratings placed on CreditWatch negative

Standard & Poor's Ratings Services placed its 'BBB' long-term counterparty credit and insurer financial strength ratings on Bahrain-based insurer Takaful International Co. BSC on CreditWatch with negative implications.
This rating action follows the recent downgrade of the long-term local currency sovereign rating on the Kingdom of Bahrain.

S&P seeks comment on changes to criteria for rating Islamic banks

Standard & Poor's Ratings Services is requesting comments on its proposal to revise its criteria for rating banks and, among them, Islamic banks.
The proposed criteria aims to provide additional insight into the way it rates banks, including Islamic banks, as well as enhance ratings comparability across sectors and geography.

Growth in Sukuk issuance offers Islamic funds an opportunity says S&P report

Standard & Poor's Ratings Services said that it believes that the sukuk market has grown large enough to support a transformation in the Islamic fund industry.
The report is titled "Sukuk Funds Poised To Grow As Sukuk Market Continues To Expand".
The sukuk market returned to growth in the first half of 2010. Global sukuk issuance topped US$13.7 billion during this period, nearly twice the US$7.1 billion recorded during the same period last year.

Standard & Poor's rates First Takaful to 'BB+'

Standard and Poor's Ratings Services has lowered its counterparty credit and insurer financial strength ratings on First Takaful Insurance Co. to 'BB+' from 'BBB-'. The Kuwait-based insurance company's ratings were removed from CreditWatch. Outlook is stable. "The outlook is stable because we believe that First Takaful will be able to prevent further weakening of its capitalization and operating performance within the next 12 months," said Standard & Poor's credit analyst Wolfgang Rief.

Kuwait's First Takaful Insurance lowered to 'BB+' on financial, business profile concerns

Standard & Poor's Ratings Services said today it lowered its counterparty credit and insurer financial strength ratings on Kuwait-based First Takaful Insurance Co. to 'BB+' from 'BBB-'.
At the same time, the ratings were removed from CreditWatch, where they were initially placed with negative implications on May 12, 2010. The outlook is stable.
Although takaful insurance appears to represent a promising niche in the Kuwaiti market, competition seems to have become extremely fierce, especially owing to the large number of takaful participants in recent years.
The risks of this scenario are intensified by what we see as reduced insurance opportunities.
Renewed pressure on the ratings may occur if the company's performance appears insufficient to maintain earnings and capitalization at levels supportive of the current ratings. Conversely, we could see positive ratings momentum if the company is able to manage a return to a more robust financial and business profile over the next 12 months.

IDB's 'AAA' credit rating affirmed

Standard & Poor's assigned 'AAA' rating to Islamic Development Bank (IDB) $3.5 billion trust certificate issuance program. Standard & Poor's said the IDB's ratings are underpinned by strong shareholders' support, very high level of capital and liquidity and a good asset portfolio with historically very low losses and preferred-creditor treatment.

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