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Moody’s values Mashreq-London Branch CDs at P-2 on short term

Moody’s values Mashreq-London Branch CDs at P-2 on short term
Mashreq
MASQ
-1.76% 165.05 -2.95
Moody's Investors Service has assigned a provisional (P)Prime-2 short-term rating to the $1 billion Certificates of Deposit (CD) programme issued and managed by the London Branch of MashreqBank, a branch of MashreqBank.

Moody's has aligned the (P)Prime-2 ratings on the CD programme of Mashreq (London Branch) with the bank's Prime-2 short-term bank deposit rating, Moody’s said in the report published on its official website, adding that the rating alignment reflects two primary considerations, namely the instruments issued under the programme will be direct, unconditional, unsecured, and unsubordinated obligations of Mashreq; and the instruments will rank pari passu with all other direct, unconditional, unsecured and unsubordinated present and future obligations of Mashreq.

Under the programme, Mashreq (London Branch) may issue CDs up to a maximum aggregate amount of $1 billion, or its equivalent in other authorised currencies.

It is worth mentioning that Moody's issues provisional ratings in advance of the final issuance under the program. These ratings represent Moody's preliminary credit opinion and Moody's will endeavor to assign definitive ratings to actual issuances from the CD program.

A definitive rating may differ from a provisional rating if the terms and conditions of the issuance are materially different from those of the programme reviewed, the ratings agency said, adding that it will disseminate the assignment of any definitive ratings through its Client Service Desk.

Moreover, upward pressure on the Mashreq's short-term ratings may develop from a combination of significant expansion of its franchise, and/or significant improvement in asset quality and coverage levels.

On the other hand, downward pressure on Mashreq's short-term ratings may develop in the event of weakening of franchise, a further deterioration of asset quality or coverage levels, and/or a weakening of the bank's capital and liquidity position.