On 10 December, Fitch Ratings upgraded the Long-Term Issuer Default Rating of FIMBank plc to ‘BB’ from ‘BB-‘ and confirmed a stable outlook for the trade finance specialist. The international rating agency explained that the upgrade is based on the capital and funding support provided to FIMBank by its major shareholders, namely Burgan Bank and United Gulf Bank, as well as the increased management and operational integration of FIMBank with Burgan Bank. Fitch also noted the dynamic process of transformation being undertaken at FIMBank and its anticipated positive effect on the Bank’s profitability. In this respect, Fitch concluded a successful restructuring of FIMBank and a strong recovery in its financial metrics could also result in FIMBank’s viability’s rating (VR) being upgraded.
Commenting on the news of FIMBank’s upgrade by Fitch Ratings, Group CEO Murali Subramanian stated that while the Bank welcomes this decision, FIMBank believes that the best is yet to come. Mr Subramanian further added that FIMBank is focusing on delivering the kind of performance that will progressively render stronger returns to shareholder. The upgrade also vindicates FIMBank’s strategy comprising an organisational restructuring, operational review and cost control measures which have been implemented over the past 18 months which has led to a turnaround in 2016 as reflected in the improved operational profitability. Moreover, legacy misadventures of prior years are being dealt with firmly, and will be fully behind the Bank in 2017.