BBK maintains ratings

RNS Number:2730L
BBK (B.S.C.)
08 January 2008



Press release

                     Moody's maintains BBK's credit ratings

Credit rating agency Moody's has updated their credit analysis report on BBK
last week and maintained the bank's credit ratings at local currency deposits
A2, Long-term foreign currency deposits A2/P-1 and BFSR C-, with a stable
outlook. In maintaining the bank's ratings, Moody's has taken into account the
bank's robust profitability, capitalization metrics and a relatively strong
franchise value based on its defensible market positions in commercial banking
in Bahrain, along with its sound corporate governance practices and adequate
risk management processes.

In analyzing the bank, Moody's have also factored the possible impact from the
bank's investment portfolio which is being affected by the current turmoil in
the financial markets, taking comfort from the modest size of this portfolio and
the bank's strong underlying profitability and capitalization profile. The small
size of the Bahrain market and relatively modest contribution from retail bankin
g to the overall earnings mix has also been considered.

Commenting on the rating agency's report on BBK, the bank's acting General
Manager, A.Karim Bucheery, said "We are pleased that Moody's has maintained
BBK's credit ratings given the current environment. The bank is a premier
commercial bank in the country and its core profitability continues to remain
strong, with most business indicators showing an encouraging trend. The bank is
well under way in implementing its current corporate strategy which would
further enhance its franchise and market position".

He added that "during the year, the bank has infused additional capital through
USD275 million subordinated debt issue and BD50 million rights offering, and is
well capitalized to finance its growth strategy".



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