Abu Dhabi Islamic bank assigned individual rating by Fitch

Fitch Ratings, the international rating agency, affirmed Abu Dhabi Islamic Bank’s long-term, short-term and support ratings at ‘A-’, ‘F2’ and ‘2’ respectively.

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By  Massoud Derhally Published  November 11, 2002

Fitch Ratings, the international rating agency, affirmed Abu Dhabi Islamic Bank’s long-term, short-term and support ratings at ‘A-’, ‘F2’ and ‘2’ respectively. The Bank was assigned an Individual rating of ‘C/D’.

The ratings, Fitch said, “reflect a short but successful track record underpinned by increasing diversification of the loan portfolio and moderate growth in profits.”

Abu Dhabi Islamic bank’s ratings also indicate reliance on the domestic economy and the need for further diversification of business volumes and revenue streams. “In a short span of time the bank has built a reputation for innovation and quality of service,” said the rating agency.

The bank’s asset quality is good but should be viewed in light of its relatively short track record. Capitalisation is strong, but capital ratios are expected to erode over time as asset growth accelerates, said Fitch. The bank’s ratings also reflect its shareholding structure, which provides a strong likelihood of potential support.

The Abu Dhabi ruling family, currently hold 29% of Abu Dhabi Islamic Bank’s equity and the Abu Dhabi Government, represented by the Abu Dhabi Investment Authority (ADIA), holds 10%. The remaining 61% is widely held by local and regional investors.

As an Islamic bank the bank provides a broad range of products that comply with Islamic Shari’a.

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