Moody's assigns A3/P-2 local currency deposit ratings to the Housing Bank for Trade and Finance (Jordan)

Both ratings have stable outlooks and pertain solely to deposits denominated in Jordanian Dinars (JOD). The bank's existing Ba3/Not-Prime foreign currency deposit ratings and D+ financial strength rating (FSR) with stable outlooks are unaffected by this action.

According to Moody's, the A3 long-term local currency deposit rating assigned to HBTF is at the country ceiling for local currency deposits in Jordan, and reflects the bank's intrinsic financial strength as well as its systemic importance to the country's financial system and economy.

The A3 rating incorporates systemic support from the Jordanian authorities, as banks with an FSR of D+ are usually rated at the Baa3/Ba1 rating level on a stand-alone basis with no external support imputed.

Moody's notes that the bank's D+ FSR reflects its sizeable franchise in the local market as the second-largest commercial bank through its
countrywide branch network that is the largest in Jordan, as well as its strong financial fundamentals. The bank's solid financial condition is underscored by: (i) its good profitability supported by healthy net interest margins and cost efficiency; (ii) low levels of non-performing loans supported by very high provision cover; (iii) strong capitalisation; and (iv) comfortable liquidity position.

The Housing Bank for Trade and Finance is headquartered in Amman and had total assets amounting to JOD4 billion (USD5.7 billion) as at 30 September 2006.