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RAK Bank ratings upgraded

The foreign currency short-term rating was also raised, to A2 from A3. The upgrades reflect RAK Bank's continuing sound financials, its good management and prudent policies.

The bank has grown substantially over the last few years and is presently the ninth largest among the local commercial banks in terms of total assets worth $2.3 billion at end June 2006.

RAK Bank's strong, professionally managed retail banking operations have contributed significantly to its interest and non-interest earnings. The bank is likely to expand its product range this year with the introduction of Islamic finance products and brokerage services.

The bank's financials continue to be sound overall. Bad debts are low and are more than adequately provisioned. The capitalisation ratio is below the average for the peer group, but is considered acceptable, particularly in view of the fact that capital is unimpaired. Liquidity has tightened, and risks have grown with the expansion of the home mortgage portfolio.