S&P boosts Arab Banking Corp.

Standard & Poor's said it raised its long-term counterparty credit rating on Arab Banking Corp. BSC to BBB+ from BBB.

At the same time, the short-term counterparty credit rating on the bank was affirmed at A-2, the agency said.

The outlook is stable.

The rating change is driven by S&P's increased confidence in the fact that shareholder support would likely be forthcoming in case of need, adding that the ratings now include a one-notch uplift to reflect its expectation that such support would be available.

The agency added that the ratings on Arab Banking Corp. also reflect the bank's strong wholesale customer franchise, robust capitalization, enhanced risk management and cohesive strategy, noting that negative rating factors include the lack of a strong home market, low profitability and a reliance on short-term funding.

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