Fitch Ratings has maintained United Arab Bank’s (UAB) Long-Term Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook while upgrading its Viability Rating (VR) from ‘b’ to ‘b+’. The VR upgrade is due to the bank’s better business profile resulting from its asset quality clean-up and new strategy, as well as improvements in asset quality and coverage of impaired loans, a rebound in profitability metrics following significant losses, and stronger capital buffers. UAB made this announcement, according to WAM.
Commenting on the announcement Mr. Shirish Bhide, Chief Executive Officer of UAB, said: “We are pleased with Fitch’s recent action to upgrade UAB’s viability rating from ‘b’ to ‘b+’ which stems from their acknowledgment of UAB’s improved business profile following the asset quality clean up and new strategy, improvements in asset quality and coverage of impaired loans, a recovery in profitability metrics after material losses, and stronger capital buffers. Given the strength and quality of our management team, the now significantly augmented Tier 1 capital and strong levels of liquidity, we remain confident of being able to further enhance our market share through the systematic implementation of our strategic and financial plans.”
He added: “We are moving swiftly forward with our strategic and financial plans, and we expect this to have a positive impact on our growth and profitability in the future.”
