OREANDA-NEWS. The Islamic International Rating Agency (IIRA) has reaffirmed the ratings of Bank ABC Islamic (E.C.) at A+(bh) (Single A Plus) / A1(bh) (A One) on the national scale (long term and short term respectively), and A- (Single A Minus) / A2 (A Two) on the international scale with a ‘Stable’ outlook on the ratings.

The bank has posted substantial growth in assets over 2014 and continuing in the present year, with commensurate improvement to profitability indicators. Ratings also take note of the steadily improving asset quality indicators at Bank ABC Islamic, with recoveries from previously delinquent accounts and no further incidence of new delinquencies. Overall liquidity profile of Bank ABC Islamic is driven by a strategic focus on marketable securities, along with consistent and regular support from the parent for funding needs.

Ratings derive significant strength from the bank’s status as a wholly owned subsidiary of Bank ABC, having translated into close financial and operational support from the parent bank. Bank ABC is amongst one of the most diversified banking franchises in the MENA region, and has remained resilient through economic and political disruptions in core jurisdictions. Given the consolidated entity’s focus on offshore business activity, Bank ABC remains largely immune to the sovereign risk profile of the home country.

The overall fiduciary score of the bank has been assessed to be in the range of ‘76 – 80’ and indicates a well developed governance structure and strong fiduciary capacity, wherein rights of various stakeholders are considered to be well-protected. Corporate governance practices reflect a sound organizational structure, given the size of the bank, and a strong self‐regulatory infrastructure given that key support functions are fully outsourced to the parent bank. Shari’a governance structure is also considered adequate with no instances of non‐compliance noted for the period.