Fitch Ratings has downgraded Bahrain's BMB Investment Bank's long-term foreign currency rating to DDD from CCC and short-term foreign currency to D from C. The individual and support ratings remain at E and 5, respectively. The ratings remain on Rating Watch Evolving.
In an October press release, Fitch had signaled that the direction of the next rating change would be determined by whether the bank successfully negotiated the renewal of a $75 million syndicated facility maturing on 23 December 2002. The bank was unable to arrange a roll-over of the facility, which meant it defaulted on this obligation.
The agency's 'DDD' rating indicates the potential for some recovery, while Evolving Rating Watch reflects both the uncertainty in assessing recovery values at this point in time, as well as the potential for the rating to recover to a non-default level if tangible support is forthcoming from external sources. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
