ADIB raises credit rating to reflect strength, stability of financial sector
(MENAFN) Abu Dhabi Islamic bank recently announced an upward revision of its basic credit rating (BCA) by the renowned global credit rating agency Moody's, underscoring the ongoing stability and enhancement of its financial standing. The bank attributes this rating upgrade to a marked improvement in profitability, fueled by higher profit margins and a diversified revenue stream, following its achievement of record net profits in 2023, coupled with a noticeable surge in net revenues.
Of notable significance is the strengthening of the bank's capital levels, a testament to its resilience, with a strategic emphasis on stable, low-cost current and savings account deposits contributing significantly to bolstering the bank's financial flexibility. Moody's, in reaffirming Abu Dhabi Islamic Bank's long-term issuer ratings in both local and foreign currency at the A2 level, while maintaining short-term issuer ratings at the Prime-1 level, signifies the agency's recognition of the bank's financial solidity and operational efficacy.
Moreover, Moody's has elevated the bank's basic credit ratings (BCA) and adjusted BCA from ba1 to baa3, maintaining a stable outlook for issuers' ratings in the long term. These upgraded ratings not only underscore Abu Dhabi Islamic Bank's pivotal role within the UAE's banking sector but also reflect the government's steadfast commitment to continually bolstering and backing local banks and institutions.
In essence, the newfound ratings by Moody's serve as a validation of Abu Dhabi Islamic Bank's strong financial performance and its unwavering dedication to delivering value to stakeholders while navigating the dynamic landscape of the banking industry.
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