Wednesday 11 May 2011

Agency downgrades Jordan's Arab Bank - The National

Political tensions in Jordan may have eased, but a downgrade of Arab Bank by Moody's Investors Service will give little relief to shareholders in the Amman lender.

Moody's cut its rating on Arab Bank by one notch to "C minus" from "C" with a "negative" outlook. The bank's Dubai branch was also downgraded in line with the parent company.

The downgrade followed the same ratings agency's lowering of Jordan's sovereign rating to "Ba2" from "Baa3". The kingdom's demotion to "speculative grade" has raised concerns about the exposure of its banks to sovereign debt.

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