UAE, Qatar banks better positioned to face economic headwinds

Dubai—In the face of deteriorating macroeconomic environment in the GCC, banking sectors across the region are facing challenges in liquidity, asset growth, asset quality and profitability, prompting leading global rating agencies to review their credit ratings.
In its latest round of review of ratings, Moody’s has kept the ratings of most UAE and Qatari banks unchanged while assigning negative outlook. In the UAE, Moody’s retained the ratings of National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB), Al Hilal Bank (AHB) and Abu Dhabi Islamic Bank (ADIB).
These rating actions follow recent confirmation of the UAE Government rating at Aa2. The current ratings of these banks are NBAD: Aa3, ADCB: A1, UNB: A1, Al Hilal Bank: A1 and ADIB: A2.
Moody’s has confirmed the long-term deposit ratings of Qatar National Bank (QNB) at Aa3 with a negative outlook, and downgraded the long-term deposit ratings of Commercial Bank to A2 from A1 with a stable outlook.
The rating actions follow Moody’s confirmation of Qatar’s government issuer rating at Aa2 with a negative outlook. The confirmation of QNB’s ratings is underpinned by the continued capacity and willingness of the government to provide support to the bank in times of stress as indicated by the confirmation of the Aa2 rating.—Agencies

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