Mubasher: Standard & Poor’s (S&P) has reaffirmed its 2019 ‘-AA’ rating on The Arab Investment & Export Credit Guarantee Corporation (Dhaman) and maintained the ‘Stable’ outlook.

In its report on 31st March 2020, the S&P agency attributed the reaffirmed rating to Dhaman’s strong financial position, which is supported by its strong capitalisation and high liquidity position that enables it to meet its obligations, according to a press release on Sunday.

In addition, Dhaman has a solid and diversified insurance portfolio and development plans.

The agency expects Dhaman to continue its business expansion, especially in areas where commercial insurance firms are inactive or of a low profile, particularly export credit insurance.

The report referred to the impact of the oil price plunge and the coronavirus (COVID-19) on the market in general and on Dhaman, in particular, being a great challenge to its growth plans.

However, the rating agency highlighted Dhaman’s strong rating of financial and institutional risks as well as the improved risk management it achieved by implementing comprehensive supervision practices.

Moreover, it noted the corporation’s strong support to shareholders through huge capital raises, a move that could affect the rating positively.

It is noteworthy that Dhaman is a pioneer multinational organisation that has provided guarantee services against commercial and non-commercial risks for the last four decades. Established in April 1974 in Kuwait as the first multilateral investment guarantee provider in the world, Dhaman is owned by the governments of Arab states and four Arab financial institutions.