Global Arab Network | Bahrain Unrest: Fitch Downgrades Mumtalakat Ratings

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Bahrain Unrest: Fitch Downgrades Mumtalakat Ratings

Global Arab Network - - Mohammed Almasri

Thursday, 03 March 2011 16:04

Bahrain Unrest Fitch Downgrades Mumtalakat Ratings

Fitch Ratings has downgraded Bahrain Mumtalakat Holding Co's (Mumtalakat) Long-term Issuer Default Rating (IDR) and senior unsecured rating to 'A-' from 'A', Global Arab Network reports according to a press statement.

Fitch has also affirmed Mumtalakat's Short-term IDR at 'F1' and removed all the ratings from Rating Watch Negative (RWN). The Outlook on the Long-term IDR is Negative. The rating action also affects Mumtalakat's USD750m 5% notes, due 30 June 2015, which have been downgraded to 'A-' from 'A'.

The downgrades follow the agency's rating action on Bahrain's sovereign ratings. In line with Fitch's "Parent and Subsidiary Rating Linkage" methodology, Mumtalakat's ratings are aligned with the Kingdom of Bahrain's ('A-'/Negative/'F1'), reflecting their strong relationship.

Mumtalakat is 100%-owned by the government of Bahrain and is the government's investment arm. It was established as an independent holding company for the government's non-oil and gas assets in June 2006. Mumtalakat is an active investor in diverse business and industry sectors in over 35 commercial enterprises, nationally and internationally.

Bahrain is in the process of diversifying its economy away from the hydrocarbon sector towards the production of high value-added goods and services and Mumtalakat was established by the government to help drive this transformation.

Global Arab Network

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