Moody's Changes Outlook on Bahrain's Banking System to Negative

2015-07-11 - 9:34 p

Bahrain Mirror: The international rating agency, Moody's Investors Service, has changed the outlook for Bahrain's banking system to negative from stable.

Moody's said in a statement it published on its official website that this change of rating is reflected in its view that the slowdown in economic growth, resulting from the impact of lower oil prices, will weigh on the banks' funding and profitability over the coming 12-18 months.

Nevertheless, the agency also considers that the banks' strong liquidity and capital buffers will continue help Bahrain to adapt to these conditions.

Moody's Investors Service expects slower economic growth of 2.7% in 2015 (from 4.5% in 2014) in Bahrain (Baa3 negative), owing to the impact of lower oil prices and associated lower government revenues and spending, which will dampen operating conditions and weigh modestly on banks' funding and profitability.

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المصدر: Bahrain Mirror
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