Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities. Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision. No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.

 

4.             To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.     

 

5.             You agree to read and be bound by the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's concludes rating review on three Jordanian banks

10 May 2011

Rating actions on two Jordanian banks reflect their high sovereign and regional exposure and the increased economic downside risks

Limassol, May 10, 2011 -- Moody's Investors Service has today taken the following rating actions on Jordan's three rated banks:

- Arab Bank plc: the bank financial strength rating (BFSR) has been downgraded to C- from C, while the local-currency (LC) deposit ratings were confirmed at Baa1/P-2. The bank's LC deposit ratings now have a negative outlook.

- Arab Bank plc (Dubai Branch): the branch's FC deposit ratings have been confirmed at Baa1/P-2 with a negative outlook, in line with the parent bank's LC deposit ratings.

- Housing Bank for Trade and Finance: both the long-term LC deposit rating and BFSR have been downgraded to Baa2 and D+ respectively from Baa1 and C-. The short-term LC deposit rating of P-2 was confirmed. The bank's LC deposit ratings of Baa2/P-2 now have a negative outlook.

- Cairo Amman Bank: the long-term LC deposit rating and BFSR have been confirmed at Ba2 and D- respectively. All of the bank's ratings now have a negative outlook.

Today's rating actions conclude the review initiated by Moody's on the three banks' ratings on 14 February 2011. The review had been triggered by Moody's downgrade of Jordan's LC sovereign rating (to Ba2 from Baa3) and the rating agency's concerns about the banks' sizeable sovereign exposure, in addition to the current political turmoil in the region that could potentially have a negative impact on economic activity and on the banks' financial performance. The negative outlook assigned to all three banks' deposit ratings reflects the continued fragile regional political landscape and related downside economic and financial risks.

RATINGS RATIONALE

Arab Bank Plc

The downgrade of Arab Bank's BFSR to C-, mapping to a Baa1 rating on the long-term scale (from C, which mapped to A3), is mainly driven by the bank's sizeable regional exposure to countries in the Middle East and North Africa (MENA) that are facing increased political and economic risks following the recent political turmoil. The group's combined overall exposure to countries such as Egypt, Tunisia, Libya, Bahrain, Syria and Yemen is around 36.5% of its total assets, although Moody's understands that its Bahraini branch exposure of around 10% of its total assets is mainly to regional corporates and not to the local economy.

Moody's notes that the BFSR downgrade also takes into account the weaker asset quality that the bank reported in recent years, with the gross non-performing loans (NPLs) ratio increasing to 8.63% in 2010 from 8.27% in 2009 and 4.15% in 2008, while the provisioning coverage for these problematic exposures was at around 72% (excluding interest in suspense) as of December 2010. Going forward, the group could be faced with additional asset quality pressure because of the likely economic slowdown in the politically troubled countries to which it is exposed. Increased loan loss provisions during 2010 have also exerted negative pressure on the group's profitability, with net income declining by 46.5% from 2009.

Moody's adds that these credit challenges are balanced by Arab Bank's strong franchise both in Jordan and the MENA region, and its good track record in weathering various crises in the region over its 80-year history. The bank has a very strong reputation, benefiting from "flight to quality" status with consumers, and an unmatched retail deposit franchise relative to its peers. The bank's conservative liquidity profile -- with almost a third of its balance sheet in the form of cash and bank placements -- and its strong capital position with a Tier 1 of 13.7% as of March 2011, provides a good level of protection to the group's creditors from any political shocks.

Arab Bank's long-term LC deposit rating remains unchanged at Baa1 as it is now rated at the same level as the bank's baseline credit assessment and in line with Jordan's LC deposit ceiling. Previously, Arab Bank's baseline credit assessment was rated higher than its long-term LC deposit rating, which was constrained by the respective sovereign ceiling.

Housing Bank for Trade and Finance (HBTF)

The downgrade of Housing Bank for Trade and Finance's BFSR to D+, which maps to a Baa3 rating on the long-term scale (from C-, which mapped to Baa2), incorporates the bank's sizeable exposure to Jordanian government securities that are rated Ba2. Such exposures comprise around 150% of its Tier 1 capital or 18% of total assets, and inevitably weigh on the bank's balance sheet and ratings given the high correlation between sovereign and banking risk. The rating action also considers HBTF's asset quality, which has weakened in recent years, with the gross NPLs ratio increasing to almost 10% in 2010 from 7.1% in 2009 and 2.7% in 2008, and modest provisioning coverage of 63% as of December 2010.

Moreover, HBTF's rating downgrade also takes into account the bank's exposure to Syria, which is also undergoing political turmoil. This exposure is raising the bank's risk positioning despite its conservative lending practices. HBTF has a consolidated 49%-owned affiliate (International Bank for Trade & Finance) in Syria, representing 17.3% of its total assets, or 21% of net loans and 18.3% of total deposits.

Against these credit challenges, HBTF has a high Tier 1 of 21.87% and very strong liquidity position, with 36.6% of its total assets placed in cash and bank deposits, and a loans-to-deposits ratio of a low 47%. These credit-positive features offer a strong buffer to absorb unexpected losses or liquidity strains both in Jordan as well as Syria.

Although HBTF's long-term LC deposit rating was downgraded to Baa2 from Baa1 due to the underlying BFSR downgrade, the bank still benefits from one notch of rating uplift as a result of our assessment of potential external support from Qatar National Bank (rated C-, mapping to a Baa1 rating on the long-term scale), which is a significant shareholder (34.4%). The uplift reflects Qatar National Bank's commitment to HBTF and its aim to gain a majority shareholding.

Cairo Amman Bank (CAB)

Moody's has today also confirmed Cairo Amman Bank's BFSR of D-, mapping to a Ba3 rating on the long-term scale, as the bank's high sovereign exposure (amounting to around 200% of its Tier 1) does not exert any rating pressure considering that the Ba2 sovereign rating is higher than the bank's baseline credit assessment. The confirmation also takes into account the improvements that the bank has undertaken over the past few years by diversifying its revenue streams and improving its asset quality. CAB's gross NPLs ratio stood at a modest 5.27% in 2010, with a 120% provisioning coverage and a Tier 1 capital ratio of 13.2%. Moreover, the bank's retail book profile, which is geared towards government employees, has proved resilient throughout the past two challenging years and has shielded the bank from asset quality problems.

The bank's long-term LC deposit rating was confirmed at Ba2, benefiting from one-notch of systemic support uplift relative to the bank's baseline credit assessment due to its importance in the local market and the payment system.

PREVIOUS RATING ACTIONS & PRINCIPAL METHODOLOGIES

Moody's previous rating actions on the three rated Jordanian banks were implemented on 14 February 2011:

- Arab Bank's BFSR was downgraded to C from C+, its LC long-term deposit rating was downgraded to Baa1 from A3 and both were placed on review for a possible downgrade.

- Arab Bank's Dubai branch FC long-term deposit rating was downgraded to Baa1 from A3 and placed on review for a possible downgrade.

- Housing Bank for Trade and Finance's BFSR of C- and its LC deposit ratings of Baa1/P-2 were placed on review for a possible downgrade.

- Cairo Amman Bank's LC long-term deposit rating was downgraded to Ba2 from Ba1 and was placed on review for a possible downgrade together with its BFSR of D-.

The principal methodologies used in assigning these ratings were "Bank Financial Strength Ratings: Global Methodology" published in February 2007 and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" published in March 2007.

Headquartered in Amman, Arab Bank Group had total assets of JOD36.6 billion (US$51.8 billion) as of end-March 2011. Headquartered in Amman, Housing Bank for Trade and Finance had total assets of JOD6.7 billion (US$9.4 billion) as of end-December 2010. Headquartered in Amman, Cairo Amman Bank had total assets of JOD1.8 billion (US$2.6 billion) as of end- December 2010.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings and public information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

The rating has been disclosed to the rated entity or its designated agents and issued with no amendment resulting from that disclosure.

Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entity or its related third parties within the three years preceding the Credit Rating Action. Please see the ratings disclosure page www.moodys.com/disclosures on our website for further information.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Limassol
Nondas Nicolaides
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

London
Yves Lemay
MD - Banking
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's Investors Service Cyprus Ltd.
Kanika Business Centre
319 28th October Avenue
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's concludes rating review on three Jordanian banks
No Related Data.
© 2023 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the credit rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service, Inc. and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Charter Documents - Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.