Moody's upgrades Mashreqbank's foreign currency deposit ratings

DUBAI - Moody's Investors Service has upgraded Mashreqbank's foreign currency deposit ratings to A2/Prime-1, from A3/Prime-2, based on the bank's improving intrinsic financial strength and its significance to the UAE banking system, said Abdul Aziz Al Ghurair, chief executive officer, Mashreqbank.

By A Staff Reporter

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Wed 29 Dec 2004, 10:53 AM

Last updated: Thu 2 Apr 2015, 11:49 AM

Al Ghurair said: "The upgrade stems from Moody's recent upgrading of the UAE's foreign currency country ceilings for bonds and deposits to A1/Prime-1 from A2/Prime-2. It is very gratifying that Moody's has recognised the improving strength of the UAE economy and the significant role that Mashreqbank plays in the country's banking system. Mashreqbank was upgraded in the report, alongside three national banks. The Financial Strength Ratings (FSRs) of all affected banks remain unchanged."

Al Ghurair further said: "In the first three-quarters of 2004 Mashreqbank's profits jumped 22.3 per cent over the previous year to Dh543 million and its total assets increased to Dh31.5 billion. Earlier this month Moody's upgraded the UAE's long term foreign currency country ceiling to A1 from A2. This was largely based on the country's strong economic fundamentals and long history of political stability.

The Moody's report noted that the UAE enjoys one of the highest GDP per capita in the region, similar to that of Spain on a PPP basis. This mostly stems from a high level of hydrocarbon exports per capita. The UAE has the fourth largest oil reserves in the world, which would last for over 100 years at current rates of production. The non-hydrocarbon economy is vibrant and growing rapidly, encouraged by the government's active promotion of the private sector and successful efforts to attract foreign investment. Meanwhile, sustained fiscal and current account surpluses have enabled the public and private sectors to accumulate a significant net foreign asset position.

More news from