Moody's rates Al-Arafah Islami Bank B1

Moody's Investors Service said it assigned B1 long-term local- and foreign-currency deposit ratings to Al-Arafah Islami Bank Ltd.

This is the first time that Moody's has assigned ratings to the Bangladesh-based Islamic bank.

Moody's also said it assigned B1 long-term local- and foreign-currency issuer ratings, not-prime short-term deposit and issuer ratings and a B2 baseline credit assessment and adjusted baseline credit assessment to the bank.

The agency also said it assigned to local- and foreign-currency counterparty risk ratings of B1/ NP and a counterparty risk assessment of B1(cr)/NP(cr).

The outlook is stable.

The B1 long-term local- and foreign-currency deposit ratings incorporate a one-notch uplift from the adjusted baseline credit assessment of B2, reflecting an assumption of a moderate level of government support in a stress scenario, Moody's explained.

The baseline credit assessment reflects the bank's modest asset quality and capital level, which are balanced by the bank's stable funding and liquidity, the agency said.

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