Abu Dhabi – Mubasher: Moody's Ratings has upgraded long-term and short-term foreign and local currency deposit ratings of The United Arab Bank (UAB) to ‘Baa3/P-3’ from ‘Ba1/NP’.
The rating agency maintained a positive outlook on the bank’s long-term deposit ratings and upgraded the baseline credit assessment (BCA) to ‘ba3’ from ‘b1’ and the adjusted BCA to ‘ba2’ from ‘ba3’.
Moody’s highlighted that the upgrade reflects the bank’s improved asset quality and profitability metrics, according to a press release.
The track record underlined the sustainability of UAB's solvency improvements over the next 12 to 18 months, as the bank has been embarking on its new growth plan.
Shirish Bhide, CEO at UAB, said: “Moody’s upgrade of UAB’s deposit ratings to Baa3 reflects our tireless efforts towards strengthening the bank’s financial position and the successful execution of its growth plan.”
“This recognition empowers us to move forward towards achieving the bank’s aspirations, further building on the trust and reliability that the bank has earned since the implementation of its new strategy,” Bhide added.
In addition, Moody’s expected that UAB’s asset quality will remain sound due to conservative underwriting standards and risk management practices, capital buffers to remain solid, and profitability. These factors have led to the maintenance of a positive outlook.
During the first half (H1) of 2024, the lender logged 15% higher net profits after tax at AED 139 million, compared to AED 121 million in H1-23.
