MANAMA: Al Baraka Bank Syria a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG) got the BBB investment grade rating of International Islamic Rating Agency (IIRA).
The rating was second year in a row, and the decision was based on the operational environment of Al Baraka Bank Syria in the context of macroeconomic, social and political conditions. This rating puts the Bank in a superior position in the local banking sector, due to maintaining a large proportion of its assets in foreign currency, which enable it to cover the sovereign level risk to a large extent.
Al Baraka Bank Syria was also assigned a sufficient credit capacity, with a rating of (71-75) as a total credit score. It also earned a strong credit rating, with a rating of 76-80 for the “Asset Quality Management”, which reflects the Bank’s high prudent level and strong capability to fulfill its credit responsibility towards investors.
IIRA considered the Bank’s governance and Sharia practices appropriate, with strong representation of the board of directors, and high levels of financial and non-financial disclosure. The Bank’s corporate governance was assessed in the range of 66-70, and the Shari’a governance within the range (71-75).
“The obtaining of the Bank of this rating for the second year embodies the soundness of standards followed in planning, management and implementation in Al Baraka Bank of Syria and it is a factor in determining the Bank’s new objectives in the Syrian banking market,” Adnan Ahmed Yousif, the President and Chief Executive of Al Baraka Banking Group, Chairman of Al Baraka Bank Syria, said.
“This result confirms the accuracy of the strategy adopted by the Bank and the high-quality performance of the management team, who is committed and capable of implementing this strategy with the utmost professionalism,” Mohammed Abdullah Halabi, Chief Executive Officer of Al Baraka Bank Syria said.
It is noteworthy that Al Baraka Bank of Syria won the awards of CPI Financial as the best Islamic bank in Syria and the best financial institution committed to the social responsibility for the Islamic banks in Syria in 2017.
The International Islamic Rating Agency (IIRA) is an independent Bahrain-based company that carries out credit ratings for banks and financial institutions around the world. It is owned by a renowned group of international rating agencies and prestigious banks such as Capital Intelligence and the Islamic Development Bank.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor’s at BB+ (long term) / B (short term).
Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2.1 billion.
The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in 16 countries, which in turn provide their services through over 700 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq, Saudi Arabia and Morocco, including two representative offices in Indonesia and Libya.
