The bank's ratings are set above Bahrain’s sovereign ratings as the majority of the bank’s assets, funding and revenue streams are outside Bahrain.
CI Ratings has affirmed Investcorp’s financial strength rating (FSR)at BBB, with a stable outlook.
In a statement, the rating agency stated that the rating reflects the bank’s geographically diversified assets, funding and revenues, good debt service record along with extended debt maturity profile as well as diversified borrowings.
The rating agency said that the financial strength rating is supported by the bank’s sound capital base, strong profitability at both the operating and net levels, and established business franchise.
Investcorp’s FSR are constrained by high exposure to investment risk and vulnerability to fair value write-downs, the dependence on wholesale and related liquidity risk - although this potential weakness is mitigated by the considerable level of undrawn committed facilities and cash balances
The lender’s challenging market conditions along with uncertain global trade negotiations also constrain the FSR.