Moody’s Assigns First Time ‘Caa2/NP’ Ratings to Al Qabidh Islamic Bank for Finance and Investment

Moody’s Investors Service (Moody’s) has assigned first time local and foreign currency long-term and short-term bank deposit ratings of Caa2/NP for Iraq-based Al-Qabidh Islamic Bank for Finance and Investment (QIBFI). The outlook for the long-term deposit ratings is stable. Concurrently, Moody’s has assigned a Baseline Credit Assessment (BCA) and Adjusted BCA of caa2 for the bank. QIBFI, which conducts Shariah-compliant banking for clients through its head office in Baghdad, Iraq, was established following its transformation from Al-Muhaj Financial Transfer Company.

Ratings Rationale

QIBFI’s Caa2 long-term deposit ratings factors the bank’s caa2 BCA. Moody’s anticipates low probability of government support given QIB...