Negative stance

KUWAIT: Moody’s Investor’s Service has maintained a negative outlook for the Kuwaiti banking system.
The negative outlook is due to the weak diversification in Kuwait’s economy and its heavy reliance on the oil sector performance.

Ratings confirmed

JORDAN: Fitch Ratings (Fitch) has affirmed Jordan Islamic Bank’s long-term Issuer Default Rating (IDR) at ‘BB-’, short-term IDR at ‘B’, Support Rating at ‘3’ and Support Rating Floor at ‘BB-’. Fitch has also affirmed the bank’s Individual Rating at ‘C/D’.
The outlook on the long-term IDR is stable. The bank’s ratings are constrained by the weak operating environment in Jordan. The ratings further reflect the bank’s fairly basic risk management systems and the uncertainty in the current economic environment on the bank’s asset quality.

Difficult time

UAE: Moody’s Investors Service (Moody’s) has maintained a negative outlook on the banking system of the UAE as a result of the company’s weak operating environment and challenges facing Dubai in particular.

According to its analyst John Tofarides, the operating environment remains difficult with low economic growth and investment, weak demand for loans as well as investor confidence issues. These curtail the banks’ ability to access low-cost, wholesale funding.

In addition, Moody’s said that asset quality among UAE banks will remain under pressure this year. Dubai World’s recent restructuring is central to defining problem loans that pose significant asset quality challenges to the UAE banking system.

Double slide

UAE: Moody’s Investors Service has downgraded the local and foreign currency deposit ratings of Dubai Bank to ‘Baa2’/‘Prime-3’ from ‘A3’/‘Prime-2’.

At the same time, Moody’s has downgraded Dubai Bank’s bank financial strength rating to ‘E+’ from ‘D’. Both ratings carry a negative outlook.

The downgrade hinges on the material weakening in Dubai Bank’s standalone strength as a result of the ongoing credit issues surrounding the Dubai corporate sector.

Brilliant performance

MALAYSIA: RAM Rating Services has reaffirmed Public Islamic Bank’s respective long- and short-term financial institution ratings at ‘AAA’ and ‘P1’. The long-term rating has a stable outlook.

RAM has also reaffirmed its parent — Public Bank’s long- and short-term financial institution ratings — at ‘AAA’ and ‘P1’ respectively.

Public Islamic Bank ratings are attributed to the bank’s credit profile, which mirrors that of its parent, Public Bank.

Parental support

MALAYSIA: RAM Rating Services has reaffirmed the ‘P1’ rating of Esso Malaysia’s RM300 million (US$90 million) Islamic Commercial Papers Issuance Facility Program.

The rating is supported by the strong financial flexibility of its parent company — Exxon Mobil Corporation.

Improved rating

MALAYSIA: RAM Rating Services has revised the rating of Senai-Desaru Expressway’s RM1.46 million (US$445,000) Bai Bithaman Ajil Islamic Debt Securities (BaIDS) to ‘BBB3’ (Negative Rating Watch).

At present, Senai-Desaru Expressway is working on restructuring the BaIDS with its appointed financial adviser, Maybank Investment Bank.