Mon 07-06-2021 11:05 AM
ABU DHABI, 7th June, 2021 (WAM) -- S&P Global Ratings has assigned ‘AA-‘ long-term issuer credit rating with Stable Outlook to Emirates Development Bank [EDB], a key financial enabler of the country’s economic diversification and industrial transformation agenda.
The bank has also been assigned a ‘gcAAA’ long-term GCC regional scale rating by S&P Global Ratings, said a statement issued by EDB on Monday.
The rating is a major endorsement of EDB’s new strategic mandate to support the UAE’s economic diversification plan by enabling individuals, mSMEs, and corporates in priority industrial sectors while promoting innovative technologies to build a knowledge-based economy.
The S&P Global rating follows Fitch Ratings’ affirming its ‘AA-’ Issuer Default Ratings [IDR] with a Stable outlook on EDB in May 2021.
The S&P Global rating assessed EDB’s capitalisation as very strong positioning the bank for expected rapid lending growth. The Stable outlook reflects the rating agency’s view of the credit standing of the UAE Federal Government. The agency believes the bank is well positioned for growth amidst its commitment to maintain robust capitalisation, underpinned by the Federal government’s backing.
Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the EDB, said: "The AA- ratings by S&P Global and Fitch reaffirms the bank's strategic plans to play a pivotal role in the economic diversification efforts of the UAE in line with the vision of the country’s wise leadership. The ratings play a very important step for EDB’s future strategy and aspirations. This rating also reinforces the bank’s position and ability to mobilise financial resources and expand its services in the field of funding and loans."
In his comments, Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said: "The ratings are a major milestone and recognition of EDB’s strong financial profile as well as an endorsement of its prudent future growth plans and sound risk management practices. We are proud of this exceptional achievement, which would not have been possible without the strong support we receive from our clients, partners and other stakeholders."
In their assessment reports, S&P Global and Fitch have favourably considered the probability of sovereign support for EDB from the Federal government in line with its new strategy to support economic development across priority sectors, its strong capital and access to various funding and liquidity sources.