Rakbank’s 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 National Bank of Ras Al-Khaimah (Rakbank or the Bank) at ‘A’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed Rakbank’s Bank Standalone Rating (BSR) and Core Financial Strength (CFS) rating at ‘bbb+’, and Extraordinary Support Level (ESL) of High. The Outlook on the LT FCR and BSR remains Stable.

Rakbank’s LT FCR is set two notches above the BSR to reflect the high likelihood of extraordinary support from the UAE government in case of need. The UAE government (sovereign ratings: ‘AA-’/‘A1+’/Stable) 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. Ordinary support from the major shareholder, the government of Ras Al-Khaimah, is also available.

The Bank’s BSR is derived from a…