FIMBank welcomes Fitch Rating affirmation

FIMBank Group President Margrith Lutschg-Emmenegger has expressed her satisfaction at Fitch Ratings re-affirming FIMBank’s Long-term Issuer Default and Short-term Issuer Default Ratings at 'BB' with a Stable Outlook, and its Viability Rating at ‘bb’.

According to Fitch, the affirmation of FIMBank’s rating is based on the Bank's plans to increase its capitalisation under its new ownership structure. The confirmation of its outlook as ‘Stable’ reflects the capital already strengthened by the KIPCO group, the Bank’s ultimate shareholder, and the additional capital and low-cost funding which the Bank is expected to receive from this shareholder during 2014.

Welcoming the ratings report, Lutschg-Emmenegger stated that “Despite the political turmoil in a number of our core markets and challenging market conditions we are very satisfied to have retained our rating”.  She explained that the last twelve months have seen the FIMBank Group undergoing major developments, not least the completion of a multi-stage process which has seen Burgan Bank and United Gulf Bank, both members of the KIPCO Group, acquire a controlling interest in the Bank. Following a recent Joint Voluntary Bid Offer by these premiere Middle Eastern banks, their stake in FIMBank increased to 80.14% of the total issued share capital of the Bank. “In the light of these developments, Fitch will be assessing KIPCO’s ability and propensity to provide support to FIMBank on a timely basis, as and when required. This may result in an upgrade of the Support Rating and the withdrawal of the Support Rating Floor”, said the FIMBank President. 

In its report, Fitch stated that FIMBank’s ratings reflect its niche focus on trade finance, represented by strong relationships in a number of emerging markets, predominantly in the Middle East and North Africa. More information can be found at www.fimbank.com.