Fitch ratings has upgraded Malta-based Fimbank’s Long-Term Issuer Default Rating (IDR) to ‘BB’, from ‘BB-’, and its support rating to ‘3’ from ‘5’. In its report, the rating agency also confirms the outlook for the bank as being ‘stable’.

The agency’s report highlights the fact that the upgrade takes into account the demonstrated record of capital and funding support provided to Fimbank by Kuwaiti-based Burgan Bank, and its sister bank, Bahrain-based United Gulf Bank, as well as the increased management and operational integration of Fimbank with Burgan Bank.

Group CEO Murali Subramanian said: “Strong and demonstrated parental support as required for the funding and capitalisation of Fimbank is the main reason Fitch have cited for this ratings upgrade. While we welcome this decision, we believe the best is yet to come.

“We have unrelenting focus on delivering the kind of performance which is expected to progressively render ever stronger returns to our shareholders. It vindicates our strategy based on a series of organisational restructuring, operational review, and cost control measures, which we have been implementing over the past 18 months”.

He added: “As a result of this strategy, 2016 has been a turnaround year for the group, and this is also reflected in the improved profitability of our operations. Moreover, legacy misadventures of prior years are being dealt with firmly, and will be fully behind us in 2017”.

The Fitch ratings report concludes by stating that “a successful restructuring of Fimnank and a strong recovery in its financial metrics could result in Fimbank’s VR being upgraded”.