Fitch withdraws Taib Bank rating

Fitch Ratings downgraded Bahrain-based Taib Bank's due to sustained losses and also announced withdrawal from rating the bank in future.

“Fitch will no longer provide ratings or analytical coverage of this issuer. The ratings are no longer considered by Fitch to be relevant to the agency's coverage,” it said.

The bank’s Long-term Issuer Default Rating (IDR) has been cut to 'B-' from 'B+' and its Individual Rating to 'D/E' from 'D'. Its Short-term IDR of 'B' and Support Rating of '5' have been affirmed. The Outlook is Stable. Fitch has simultaneously withdrawn all ratings.

The downgrades reflect the bank's continuing losses due to declining operating revenues, high impairment charges and other provisions, and erosion of the bank's equity such that regulatory capital ratios are below the minimum requirements of the Central Bank of Bahrain.

In Fitch's opinion, it will be challenging for the bank to restore its profitability and franchise in the current operating environment. In addition, there is a continued absence of strategic direction from its 60 per cent shareholder, Dubai Financial Group.

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