BMB was put on review for a downgrade last month, having already had its financial strength and foreign currency ratings reduced to E+ and B2 respectively because of a worsening liquidity position. Moody’s said it would use the review period to assess the extent of support from the Bahrain Monetary Agency (BMA – central bank), the bank’s ability to secure funding, and capital injection issues: BMB’s board has approved a $20 million capital increase, but Moody’s said that it was not yet clear whether or not this would be sufficient to rebuild the trust of creditors. However on the positive side, the agency said that capitalisation ratios remained adequate, and that restructuring had been successful at improving efficiency and risk management. In August the bank posted its third consecutive quarterly profit, reflecting a return to profitability after full year losses in 2000 and 2001 (MEED 2:8:02).