Commercial Bank of Dubai – 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 Commercial Bank of Dubai (CBD or the Bank) at ‘A-’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed CBD’s Bank Standalone Rating (BSR) of ‘bbb’, Core Financial Strength (CFS) rating of ‘bbb-’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR is Stable.

The Bank’s LT FCR is set two notches above the BSR to reflect the high level of extraordinary support, which mitigates some weaknesses in CBD’s intrinsic creditworthiness. CI expects the Bank to receive support from the UAE government (Sovereign ratings: ‘AA-’/‘A1+’/Stable) in case of need. The government has demonstrated such support in the past and, in CI’s view, has the means and willingness to continue to do so in the future.

CBD’s BSR is based on a CFS rating of…