Mubasher TV
Contact Us Advertising   العربية

Moody's affirms Emirates NBD's ratings, changes outlook to positive

Moody's affirms Emirates NBD's ratings, changes outlook to positive
Photo Credit: Arabianeye - Reuters
Emirates NBD
EMIRATESNBD
0.29% 17.30 0.05

Moody's Investors Service on Thursday affirmed Emirates NBD PJSC's Baa1 long-term deposit ratings, Prime-2 short-term deposit ratings and ba2 baseline credit assessment (BCA).

At the same time, Moody's changed the outlook on the bank's long-term ratings to positive from stable.

The ratings agency said the affirmation reflects the bank’s established operations in the UAE, notably its retail business which, through the largest branch network in the country, drives ENBD's strong profitability and funding metrics.

The affirmation also mirrors robust risk management framework, coupled with a strong treasury function, which support the bank's asset quality and funding profile. These strengths are moderated by high and increasing level of related-party, borrower and sector concentrations leaving the bank susceptible to event risk; and relatively weak, albeit improving, asset quality metrics and moderate loss-absorption capacity (loan loss coverage and capitalisation levels), particularly in light of the zero-risk weighting applied to the exposures of the Dubai government, according to the ratings agency.

Moody’s also said the change in outlook to positive from stable reflects its view that despite the low oil-price operating environment, the bank will continue to improve its loss-absorption capacity and asset quality metrics.