Standard & Poor’s Ratings Agency confirmed the credit rating of five UAE banks with stable outlook.
The audit included Abu Dhabi Commercial Banks, First Abu Dhabi Bank, Mashreq, National Fujairah and Sharjah Islamic Bank.
The agency indicated that the UAE banking sector will benefit from an expected rise in interest rates, assuming there are no major disruptions in corporate and individual clients’ ability to meet their financial obligations.
The agency confirmed that UAE banks have strong funding capabilities with stable public sector deposits and government-affiliated companies, guaranteeing 30% of total deposits.
Waleed Al-Khatib, managing partner of Global Equities and Bonds Trading, said that the fixing of the rating will lead to an improvement in the values of the asset to guarantee the loans.
He said the creditworthiness of UAE banks is very good, although they suffered some bad debts at the start of the Corona pandemic due to high provisions following the rise in insolvency cases.
He pointed out that this classification offers a good insight into the economic trend in general.
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