United Arab Bank ’s Ratings Affirmed ; Outlo ok Revised to Negative
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Summary
Ref: AE02019 CRA 00-1 2 July 2020
United Arab Bank ’s Ratings Affirmed ; Outlo ok Revised to Negative
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating ( LT FCR) and Bank Standalone Rating (BSR) of United Arab Bank’s (UAB) to Negative from Stable . At the same time, CI Ratings has affirmed the Bank’s LT FCR and Short-Term Fore ign Currency Rating (ST FCR) at ‘BBB’ and ‘A2’ , respectively. T he Bank’s BSR of ‘bb+’, Core Financial Strength (C FS) rating of ‘bb-’ and ESL of High have also been affirmed .
The principal factors underpinning the Negative Outlook are the rising risk levels in an increasingly challenging operating environment, and the Bank’s underlying financial weaknesses, which could make it difficult for it to stage a quick recovery.
UAB’s LT FCR is two notches higher than…