Ratings of 50 MENA banks under reviewon Basel III criteria | A1SaudiArabia.com

Standard & Poors (S&P) is reviewing credit ratings on 50 banks in the Middle East and North Africa under a new set of criteria, a move that could result in higher funding costs for lenders already hit by the euro zone crisis and the Arab Spring revolts.

The agency, which recently classified Bahrains banks as the riskiest in the GCC (Gulf Cooperation Council), and saw a weak credit profile for UAE lenders, expects more activity in debt capital markets as bank lending struggles, a senior S&P executive said.

“We look at 25 banks in the GCC region. We also rate banks in Tunisia, Egypt, Jordan, Lebanon so across the MENA, we look at 50 credits,” said Timucin Engin, associate director, financial institutions, at S&P, adding that he expected decisions by year-end.

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