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Fitch affirms ‘B’ rating on Trade Bank of Iraq

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The bank currently has a representative office in Abu Dhabi and was recently granted a licence to open a branch in Saudi Arabia.

Wednesday 19, December 2018 BY KUDAKWASHE MUZORIWA

Fitch Ratings has affirmed its B long-term issuer default rating (IDR) on Trade Bank of Iraq (TBI) with a stable outlook.

In a statement, the rating agency stated that TBI's IDRs are driven by the bank's viability rating (VR) and underpinned by potential sovereign support.

The lender’s viability rating is said to be constrained of by the operating environment in Iraq, which can be volatile and challenging, where TBI generates 85% of its business volume.

Fitch said that TBI has a satisfactory funding and liquidity position, helped by substantial government deposits. The bank’s profitability is also satisfactory, its core net interest income grew in 2017 despite slow business volume growth due to conflict and low oil prices.

TAGS : TBI, Fitch Ratings

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