Moody's Investors Service has placed the A2 foreign currency deposit and C- financial strength (FSR) ratings of First International Bank of Israel (FIBI) on review for a possible downgrade.
The review follows the recent decision by the Safra Banking Group to sell its stake in FIBI Holding Company Limited, the parent company of FIBI.
Moody's noted that, in the past, FIBI's financial strength rating benefited from association with the Safra Group, while the deposit rating imputed a degree of expected support from both the Safra Group and the Israeli government authorities.
According to Moody's, the review for possible downgrade of the FSR will assess the intrinsic financial strength of the institution absent an association with the Safra Group. Concurrently, Moody's states that the review for possible downgrade of the deposit rating will consider the ongoing degree of potential support.
First International Bank of Israel, headquartered in Tel Aviv, Israel, reported total assets of $13.8 billion at December 31, 2002. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
