Moody's: Investcorp preferreds a boon

Moody's Investors Service said that the announcement by Investcorp Bank BSC that it had raised more than $500 million in new preference shares is a positive development for the bank.

According to Moody's, this represents the successful completion of Investcorp's capital-raising efforts, which were initiated in Q4 2008.

"Despite the cost, the issue of new preference shares eases pressure on the bank's solvency and liquidity positions and provides it with additional resources to cope with a sustained period of low investment origination, placement activity and valuation pressures," said George Chrysaphinis, vice president - senior analyst in Moody's financial institutions group.

Moody's added that it will conclude its ongoing review of Investcorp's Ba1 long-term deposit rating and D+ bank financial strength rating shortly after the release of the bank's full-year results later this month.

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