Mubasher: Capital Intelligence Ratings (CI Ratings) today announced on Monday that it has affirmed the Financial Strength Rating (FSR) of UAE’s Commercial Bank of Dubai (CBD) at ‘BBB+’.
The rating was based on the CBD’s good profitability, solid capital adequacy ratio (CAR), good liquidity and able management along with an improvement in main asset quality metrics in 2015, according to an issued report.
CI said that the rating was constrained by the still high non-performing loan (NPL) ratio, customer concentrations in loans and deposits, and the challenging operating environment.
“The Bank’s Long-Term Foreign Currency Rating (FCR) is affirmed at ‘A-’ and the Short-Term FCR at ‘A2’,” the report said, adding “The Support Rating of ‘2’ is maintained.” The Outlook for both the FSR and FCR is ‘Stable’.
Despite the substantial growth in loans in 2015, the Bank’s liquidity ratios remained stable at year-end, the report added.
