MANAMA, (Reuters) – Ratings agency Standard & Poor’s cut on Tuesday its rating of The International Banking Corp (TIBC), part of troubled Saudi group Algosaibi, to default status after Bahrain’s central bank took control of the lender.

S&P said in a statement it had lowered its rating on TIBC, owned by Ahmad Hamad Algosaibi & Bros (AHAB) to default status ‘D/D’ from selective default ‘SD/SD’ after Bahrain’s central bank said last week there was a substantial shortfall in the bank’s assets compared with its liabilities.

Algosaibi as well as Saudi private Saad group ran into financial difficulties in May but have released little information since, leaving a large number of banks wondering whether they will recover their loans.

S&P had downgraded TIBC to selective default on May 12, saying the bank had defaulted on some of its debt.

Bahrain’s central bank last week assumed control of TIBC as well as Saad’s Awal Bank and said it would appoint an external administrator to identify creditors’ claims and manage the distribution of the remaining assets.

TIBC had assets worth $3.8 billion at the end of the year, according to its website.