S&P rates Albaraka

Standard & Poor's said it assigned its BBB-/A-3 long- and short-term counterparty credit ratings to Albaraka Banking Group BSC.

The outlook is stable.

The ratings on Albaraka reflect the group's geographic diversification as a fully-fledged Islamic banking group operating in the Middle East and North Africa, its good liquidity profile and satisfactory capitalization, the agency said.

Offsetting these factors is the group's lack of a strong home market, its challenging business model, as a decentralized player operating in numerous markets and its only adequate asset quality, according to S&P, which noted that the group will be challenged to develop its customer franchise, enhance profitability and control risks, with the parent bank and its units becoming a more cohesive group.

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