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EDB has also been assigned a “gcAAA” long-term GCC regional-scale rating
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EDB CEO Ahmed Mohamed Al Naqbi calls the rating recognition of EDB’s strong financial profile
The United Arab Emirates’ government-owned Emirates Development Bank has received an “AA-” long-term-issuer credit rating from international credit ratings agency S&P Global Ratings, said local reports on Monday, June 7.
The agency has also given the bank a “stable” outlook as a borrower, said the reports.
It has also been assigned a “gcAAA” long-term GCC regional-scale rating, the reports quoted EDB as saying in a statement.
The rating is a reflection 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.
This follows Fitch Ratings affirming its “AA-” Issuer Default Ratings [IDR] with a stable outlook on EDB in May.
The S&P Global Rating assessed EDB’s capitalization as very strong positioning the bank for expected rapid lending growth. The outlook reflects the rating agency’s view of the credit standing of the UAE federal government, said the local reports.
They added that the agency believes the bank is well positioned for growth amidst its commitment to maintain robust capitalization, underpinned by the Federal government’s backing.
The reports quoted EDB CEO Ahmed Mohamed Al Naqbi as saying: “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.”