Fitch upgrades National Bank of Bahrain to 'A'/'F1' following upgrade of the Bahraini Sovereign

This results from the upgrades of the Bahraini Sovereign Long-term foreign currency IDR to 'A' from 'A-' (A minus) and Short-term foreign currency IDR to 'F1' from 'F2'. Following the upgrade, the Outlook for NBB's ratings is now Stable, reflecting the Stable Outlook on the sovereign ratings of Bahrain. NBB's ratings of Individual 'B/C' and Support '1' are affirmed.

NBB's Long- and Short-term IDRs and Support ratings reflect the extremely high probability of support from the Bahraini authorities, in case of need. This is based on the government of Bahrain's 49% direct ownership of NBB, its significant role in the domestic banking market and the Bahraini authorities' ability and strong propensity to maintain confidence in a relatively small banking system.

The Individual rating reflects NBB's leading domestic franchise, stable profitability, strong asset quality and capitalisation, and low cost funding base. It also takes into account the bank's reliance on a relatively small domestic market and increasing competition.

NBB became the first locally registered bank in Bahrain in 1957. The Bahraini government acquired a 49% stake in 1973. The bank has a domestic network of 25 branches, 41 ATMs and a branch in Abu Dhabi. It provides a broad range of wholesale and retail banking services and has leading domestic market shares in loans and deposits.