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Financial monitor revises Mumtalakat rating

MANAMA: Fitch Ratings has downgraded Bahrain Mumtalakat Holding Company's (Mumtalakat) long-term issuer default rating (IDR) and senior unsecured rating to BBB from A-.

The agency has simultaneously downgraded the short-term foreign currency IDR to F3 from F1.

In addition, the agency has put the long-term IDRs and senior unsecured ratings on rating watch negative.

The rating action also affects Mumtalakat's $750 million five per cent notes, due on June 30, 2015, which have been downgraded to BBB from A-.

The downgrades follow the agency's action on Bahrain's sovereign ratings.

In line with Fitch's parent and subsidiary rating linkage methodology, Mumtalakat's ratings are aligned with Bahrain's ratings, reflecting their strong relationship.

Mumtalakat is 100pc owned by the government of Bahrain and is its investment arm.

It was established as an independent holding company for the government's non-oil and gas assets in June 2006.

Mumtalakat is an active investor in diverse business and industry sectors in more than 35 commercial enterprises nationally and internationally.

Bahrain is in the process of diversifying its economy away from the hydrocarbon sector towards the production of high value-added goods and services and Mumtalakat was established to help drive this transformation.



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