Capital Intelligence rates an Iraqi bank with a stable outlook
Economy News – Baghdad
The Capital Intelligence Credit Rating Agency confirmed its credit rating of the long-term assets of the Iraqi Islamic Bank for Investment and Development (BIIB), listed on the Iraq Stock Exchange, denominated in foreign currencies, at “B-”, with a stable outlook.
The agency added in a research note on its official website that it maintained the bank’s short-term foreign currency-denominated asset rating (ST FCR) at “B.”
The agency maintained the independent bank’s rating at “b-” with a stable outlook, the fundamental financial strength rating at “bb-” and the exceptional support level at “uncertain.”
The bank’s ratings within the country’s borders also remained at “iqBBB+” for long-term investments and “iqA2” for short-term investments, with a stable outlook.
The bank enjoys a good level of profitability in 9 months of 2023, a strong capital base, and a high level of liquidity supported by the growing customer deposit base and representing credit strength.
On the other hand, the agency pointed to the major credit challenges facing the bank, as is the case with the rest of Iraqi banks, due to the economic and political weaknesses in Iraq despite the current oil prices, as well as the concentration in assets and customer deposits, and the relatively small balance sheet and market share.
In addition, the bank faces high rates of non-performing financing despite the improvement and the weak regulatory and supervisory framework.
Despite the bank’s relatively small balance sheet, it has nevertheless succeeded in expanding assets and customer deposits in recent years, and there remains a significant degree of concentration risk inherent in the balance sheet.
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