Moody's cuts Bahrain's Investcorp on financials

Ratings agency Moody's downgraded Bahrain-based Investcorp INVB.BH (INVBq.L) on Tuesday, citing the fragility of its financial condition and the tough environment for private equity deals to generate income.

Moody's said in a statement it had downgraded the long-term deposit rating of the Bahrain- and London-listed investment house to Ba2 from Ba1, its financial strength rating to D from D+ and assigned a negative outlook to the ratings.

It said Investcorp's financial strength was limited by modest equity levels compared with its risk assets, a high concentration of its private equity investments and little prospects for the company to improve its earnings from fee-generating private equity transactions.