Bank of Sharjah – Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Bank of Sharjah (BOS or the Bank) at ‘BBB+’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed BOS’s Bank Standalone Rating (BSR) of ‘bb+’, Core Financial Strength (CFS) rating of ‘bb-’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR remains Stable.

BOS’s LT FCR is set three notches above its BSR. This is substantially underpinned by the high likelihood of the Bank receiving extraordinary support from the UAE government in case of need. The UAE government (sovereign ratings: ‘AA-’/‘A1+’/Stable) has demonstrated support in the past and has the means and willingness to continue to provide such support in the future. Additionally, BOS can also expect extraordinary support from the government of Sharjah, a founding shareholder….