Fitch Ratings, an American credit rating agency, has affirmed United Arab Bank’s (UAB) Long-Term Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook and upgraded its Viability Rating (VR) to ‘b+’ from ‘b’.
The upgrade of the VR reflects the improved business profile following the asset quality clean-up and new strategy, improvements in asset quality and coverage of impaired loans, a recovery in profitability metrics after material losses, and stronger capital buffers.
Shirish Bhide CEO – UAB
“We are pleased with Fitch’s recent action to upgrade UAB’s viability rating from ‘b’ to ‘b+’ which stems from their acknowledgment of UAB’s “improved business profile following the asset quality clean up and new strategy, improvements in asset quality and coverage of impaired loans, a recovery in profitability metrics after material losses, and stronger capital buffers. Given the strength and quality of our management team, the now significantly augmented Tier 1 capital and strong levels of liquidity, we remain confident of being able to further enhance our market share through the systematic implementation of our strategic and financial plans.”
Mr. Bhide added that “We are moving swiftly forward with our strategic and financial plans, and we expect this to have a positive impact on our growth and profitability in the future.”
In February 2023, UAB joined the UAE Trade Connect (UTC), the fintech blockchain platform of e& enterprise, which is the UAE’s first commercialized solution to combat fraud in the trade finance space built on advanced technologies, as an official member.
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