United Arab Bank; Core Financial Strength Raised and Other Ratings Affirmed

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

The one-notch upward revision of the Bank’s CFS is underpinned by the continuing improvement in major parameters. UAB’s principal strengths are its solid capital ratios, good asset quality, strong customer deposit collections, and steadily rising net interest and fee income, along with good ROAA. Principal challenges are customer concentrations in loans and deposits, in line with peers, and a moderately high level of short-term interbank liabilities. A global slowdown due…