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|Yemen's Credit Rating Rises Despite Global Financial Slump|
Article Date: January 13, 2009
Despite the global
financial turmoil, Yemen's credit rating rose from " -B" in November
2006 to "B" in December 2008.
Yemen's foreign currency rating also rose from C to B during the same period.
The Capital Intelligence has raised Yemen's credit ratings in recognition of improvements in the banking sector.
Governor of the Yemen Central Bank Ahmed al-Samawi said the Capital Intelligence's announcement came as a result of effective reform programs the bank has implemented.
He said the bank worked during the last few years to activate its role in attracting savings, finance investments, and keep currency stability as well as promoting the role of financial mediation to encourage people's savings.
Furthermore, the banking sector in Yemen succeeded in implementing international banking procedures such as solvency capital which reached 12 percent at the Yemen Central Bank, al-Samawi said.
He noted that Yemeni banks don't suffer lack of liquidity as these banks adhere to credit measures identified by the bank.
He added that the bank allowed treatments to absorb liquidity including saving documents, open market operations and compulsory reserves requirements which protected Yemeni banks from difficulties resulted by credit risks and bad standing loans.
The Capital Intelligence is a leading credit rating agency in the world's emerging markets specializing in the analysis of counterparty credit risk of financial institutions.
It has been providing credit analysis and ratings since 1985, and now rates over 400 Banks, Corporates and Financial Instruments (Bonds & Sukuk) in 39 countries.A specialist in emerging markets, CI's geographical coverage includes the Middle East, the wider Mediterranean region, Central and Eastern Europe, South Asia, South-East Asia, the Far East, and North and South Africa.