Moody’s gives Ba2 CFR to Investcorp Bank

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating with a negative outlook to Investcorp Bank BSC and withdrew the baseline credit assessment (BCA), ba2 adjusted BCA and Ba2 stable/Non-Prime deposit ratings.

The change in outlook follows a similar move taken recently on Investcorp SA and Investcorp Capital Ltd. The primary methodology to analyze the Investcorp group (Investcorp) is now the asset manager methodology. The agency said it will continue to use the banks’ methodology but as a secondary analytical input.

The rationale for the change of primary methodology lies in Invescorp's operations as an alternative asset manager, deriving more than 80% of its revenues from fee income associated with its role as a third-party asset manager.

Moody’s said the negative outlook reflects its concern that Investcorp might face increasing difficulties in raising new capital or reinvesting clients' capital in the coming year(s) due to the weakening operating environment in the Gulf Cooperation Council (GCC) region driven by depressed oil prices.

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