Standard & Poor’s (S&P), the international rating agency, reaffirmed the counterparty credit ratings of Arab Banking Corporation (ABC) at BBB+/Stable/A-2 on 19 June 2008. 
One reason for this acknowledgement is “S&P’s belief that support from principal shareholders is highly likely in case of need.”
This was fully demonstrated by the recent increase in ABC's capital by $1.11 billion, through a rights issue of 1.0 billion shares at $1.11 per share which was finalised on 18 June 2008. ABC's principal shareholders Kuwait Investment Authority, Central Bank of Libya and Abu Dhabi Investment Authority oversubscribed their rights in their pre-existing proportions. Ownership of ABC now stands as Kuwait Investment Authority 29.7%, Central Bank of Libya 29.5%, Abu Dhabi Investment Authority 27.6%, and other shareholders 13.2%.
Mr. Hassan Juma, President & Chief Executive of ABC, said “The successful completion of the rights issue is a recognition of the confidence of the shareholders in ABC’s strategy to focus on fulfilling the long term needs of our clients and the aspirations of our shareholders, despite the ongoing challenging conditions in the financial industry. We are pleased with S&P’s endorsement through reaffirmation of ABC’s ratings.”
© 2008 Mena Report (www.menareport.com)
Financial Markets
