The success of Bahrain's recent $ 1.5 billion bond issue is a major boost to global investor confidence in the kingdom.

That was the message from top-level financial sector executives at a roundtable hosted by the Bahrain Association of Banks (BAB) at the Diplomat Radisson Blu Hotel, Residence and Spa.

Bahrain's first conventional bond issue in two years was oversubscribed by 400 per cent with bids from US, Europe and Asia.

"Oversubscription is a continuing sign of investor confidence in the region and Bahrain as a sovereign issuer," said Central Bank of Bahrain (CBB) adviser Richard Ellis.

Bahrain's credit rating is not likely to face any further downgrade, he said.

"Credit rating agencies downgraded the kingdom because of political concerns, not because of poor revenues," he said.

"We have had useful meetings with those agencies recently," he said.

"They have not suggested any further downgrade but they have not indicated an upgrade either," he added.

Credit rating agencies have adopted a cautious approach when it comes to revising the status of most economies, he said.

"They consider themselves partly to blame for the financial crisis. So they are reluctant to upgrade immediately," Mr Ellis added.

Bahrain's banks are unlikely to be affected by the crisis in the euro zone, a top banking official told the meeting.

"We don't have figures for the exposure of Bahrain banks to the euro zone," said BAB chairman Abdulkarim Bucheery.

"We were blessed to have thought about redirecting investment from abroad into the region in the wake of the 2007 crisis," said Mr Bucheery, who is also BBK chief executive.

"Most banks focused back on Bahrain and neighbouring countries and BBK has no exposure to Europe and Bahrain banks have very little exposure.

"Financial results of banks for the first-half of this year show a positive outlook for the sector," he said.

"Credit extension in the country has grown.

"Growth on year-to-year has increased by five per cent on loans in the retail sector and is much higher in the corporate sector," he added.

Bahrain is keen to reach out to the East, said BAB chief executive Robert Ainey, while discussing plans for a major event for the association at the IMF/World Bank conference in Japan.

BAB is set to host a reception during the conference in Tokyo.

"In the past we saw the direction focused on Western economies, so it's good to see them looking towards the East," he added.

Mr Ellis added that the CBB would be discuss Basel 111 and capital adequacy ratios with the banking sector after Ramadan. However, Bahrain was under no pressure to meet the new regulations meant to come into effect for signatories to the agreement by January next year, he added. Caption: At the event are, from left, Mr Ainey, Mr Bucheery, Al Baraka Bank chief executive Mohammed Al Mutaweh and Mr Ellis