Moody's Investors Service has withdrawn the foreign currency deposit ratings of B3/NP and the Financial Strength Ratings of E assigned to both BMB Investment Bank (BMB) and to Bahrain International Bank (BIB).
In 2002, medium-term lenders refused to renew on time their syndications to BMB and BIB, exacerbating an already tight liquidity situation, effectively causing both banks to default on their medium-term loans, Moody's stated in a recent news release.
Currently, the banks continue to search for solutions to their financial problems, but the protracted delay has exacerbated their financial situations. Such delays have also prevented the banks from reporting their financial results in a timely fashion. The absence of up-to-date financial information on the two banks as well as the limited utility of the ratings for the banks' creditors and depositors have been the main reasons behind this rating action, said Moody's.
BMB and BIB are both headquartered in Manama, Bahrain and had total assets of $512.8 million and $887.5 million respectively as of December 31, 2001. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
