Moody’s upgrades Bahrain’s retail banking outlook to ‘Stable’

April 15, 2014 1:24 am

International credit rating agency, Moody’s has said that solid funding, high liquidity and capital positions supported by increased government spending, is expected to shore up the asset quality and profitability of Bahrain’s retail banking sector, Gulf News has reported. The rating agency has recently changed its outlook on Bahrain’s retail banking system to ‘stable’ from ‘negative.’ “The outlook change reflects the banks’ solid funding, liquidity and capital positions, in addition to our expectation of further economic recovery, fuelled by increased government spending, which will shore-up banks’ profitability and asset quality,” said vice president-senior credit officer at Moody’s, Khalid Howladar.