Moody’s has downgraded the subordinated debt ratings (by one to three notches) of 12 banks in the Gulf Cooperation Council (GCC) countries due to “heightened risk of the imposition of losses on these instruments,” the agency said in a statement.
The list includes Arab National Bank, Banque Saudi Fransi, Abu Dhabi Commercial Bank, Emirates NBD P, First Gulf Bank, Mashreqbank, Commercial Bank of Qatar, Doha Bank, Qatar National Bank, Burgan Bank, Bank Muscat and BBK. All other ratings and outlooks for these issuers remain unaffected, Moody’s said.
“Although the downgrades capture the evolving risk profile of subordinated debt, the rating agency continues to recognise the unique record, capacity and willingness of Gulf authorities to extend support, particularly to government-owned banks,” Moody’s noted.
The downgrade of the subordinated debt ratings reportedly implies that the risk profile of junior debt instruments has risen, given global regulatory trends of imposing losses on junior creditors as part of bank bailouts orchestrated by governments.
Iraq is in the final stages of negotiating its first-ever purchase of LNG supplies as power outages hamper the Middle East country, Bloomberg reported on June 26. Dallas-headquartered Excelerate ... more
Sudan’s Sovereign Council head, Abdel Fattah al-Burhan, issued a constitutional decree on May 19 appointing Kamil al-Tayeb Idris as the new prime minister, Al Sharq Al Awsat reported. He also ... more
Egypt's state-owned gas company EGAS has received several offers to supply liquefied natural gas (LNG) shipments urgently needed for summer, Al Sharq reported on May 18, citing an unnamed government ... more