Fitch Downgrades Arab Bank Australia Limited to 'BBB-'/Negative <Origin Href="QuoteRef">ARBK.AM</Origin>

(The following statement was released by the rating agency)

SYDNEY, January 09 (Fitch) Fitch Ratings has downgraded Arab Bank Australia 
Limited's (ABAL) Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'A-'. The 
Rating Watch Negative (RWN) has been removed. The Outlook is Negative. ABAL's 
Viability Rating remains unaffected at 'bb+'. A full list of rating actions can 
be found at the end of this rating action commentary.

KEY RATING DRIVERS - IDRs AND SUPPORT RATING

ABAL's IDRs and Support Rating have been downgraded following the rating action 
on its parent, Arab Bank plc (Arab Bank, BBB-/Negative) on 9 January 2014. 
Please refer to 'Fitch Downgrades Arab Bank PLC to BBB-; Negative Outlook' 
published 9 January 2014. 

ABAL's Long- and Short-Term IDRs and Support Rating reflect its status as a core 
subsidiary of its parent. Both share the same brand name and strategy, and 
maintain a close working relationship. The group keeps a very liquid balance 
sheet, and is well placed to provide support, especially given ABAL's small size 
relative to its parent. ABAL made up just 2.5% of the group's total assets at 
end-2012. 

RATING SENSITIVITIES - IDRs & SUPPORT RATING

ABAL's IDRs and Support Rating would be downgraded if Arab Bank's IDRs were 
downgraded, or if there were a change in Fitch's view of ABAL's role as a core 
subsidiary of Arab Bank. 

The rating actions are as follows: 

Arab Bank Australia Limited (ABAL):

Long-Term IDR downgraded to 'BBB-' from 'A-'; removed from RWN; Outlook 
Negative; 

Short-Term IDR downgraded to 'F3' from 'F1'; removed from RWN; 

Support Rating downgraded to '2' from '1'; removed from RWN; and

Viability Rating; 'bb+', unaffected.

Contacts: 

Primary Analyst 

Andrea Jaehne

Director

+61 2 8256 0343

Fitch Australia Pty. Ltd., Level 15, 77 King Street, Sydney NSW 2000

Secondary Analyst 

Tim Roche

Senior Director

+61 2 8256 0310

Committee Chairperson

Eric Dupont

Senior Director

+33 1 4429 9131

Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: 
iselle.gonzalez@fitchratings.com.

Additional information is available on www.fitchratings.com

Applicable criteria "Global Financial Institutions Rating Criteria", dated 15 
August 2012, "Rating FI Subsidiaries and Holding Companies", dated 10 August 
2012, and "Evaluating Corporate Governance" dated 12 December 2012 are available 
at www.fitchratings.com.

Applicable Criteria and Related Research: 

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Evaluating Corporate Governance 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=694649

Additional Disclosure 

Solicitation Status 

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813912

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Fitch Australia Pty Ltd holds an Australian financial services licence (AFS 
licence no. 337123) which authorises it to provide credit ratings to wholesale 
clients only. Credit ratings information published by Fitch is not intended to 
be used by persons who are retail clients within the meaning of the Corporations 
Act 2001.

(Repeat for additional subscribers)

Jan 9 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has downgraded Arab Bank Australia Limited's Href="NewsSearch">ARBKXA.UL (ABAL) Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'A-'. The Rating Watch Negative (RWN) has been removed. The Outlook is Negative. ABAL's Viability Rating remains unaffected at 'bb+'. A full list of rating actions can be found at the end of this rating action commentary.

KEY RATING DRIVERS - IDRs AND SUPPORT RATING

ABAL's IDRs and Support Rating have been downgraded following the rating action on its parent, Arab Bank plc (Arab Bank, BBB-/Negative) on 9 January 2014. Please refer to 'Fitch Downgrades Arab Bank PLC to BBB-; Negative Outlook' published 9 January 2014.

ABAL's Long- and Short-Term IDRs and Support Rating reflect its status as a core subsidiary of its parent. Both share the same brand name and strategy, and maintain a close working relationship. The group keeps a very liquid balance sheet, and is well placed to provide support, especially given ABAL's small size relative to its parent. ABAL made up just 2.5% of the group's total assets at end-2012.

RATING SENSITIVITIES - IDRs & SUPPORT RATING

ABAL's IDRs and Support Rating would be downgraded if Arab Bank's IDRs were downgraded, or if there were a change in Fitch's view of ABAL's role as a core subsidiary of Arab Bank.

The rating actions are as follows:

Arab Bank Australia Limited (ABAL):

Long-Term IDR downgraded to 'BBB-' from 'A-'; removed from RWN; Outlook

Negative;

Short-Term IDR downgraded to 'F3' from 'F1'; removed from RWN;

Support Rating downgraded to '2' from '1'; removed from RWN; and Viability Rating; 'bb+', unaffected.

((Bangalore Ratings Team, Hotline: +91 80 6677 2513 satish.kb@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: satish.kb.thomsonreuters.com@reuters.net))

Keywords: Fitch Downgrades Arab Bank Australia Limited to 'B