International rating agency Moody's Investors Service has placed on review for possible downgrade BMB Investment Bank's D- Financial Strength Rating (FSR) and Ba3 long-term foreign currency deposit rating.
According to Moody's, the rating review will focus on BMB's tighter liquidity position, particularly the bank's ability to refinance borrowings maturing over the next few months during periods of heightened geopolitical risk.
In this respect, the rating agency cautioned that in addition to ongoing volatility in financial markets related to the Middle East, unfavorable market conditions for exiting private equity investments—which represent a significant share of BMB's business—would create the need for stronger liquidity positions in the case of banks like BMB.
BMB is headquartered in Manama, Bahrain and had total assets of $482.4 million at March 31, 2002. BMB was established in 1982 as a Bahrain-incorporated offshore banking unit. BMB focuses on investment banking activities and developing structured products for distribution in the Gulf. Management is also developing asset management activities.
Following the heavy loss in 2000, 2001 was a year of restructuring with the bank scaling back its trading risk exposures, enhancing risk management discipline, and adopting an aggressive cost management program. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
