05 August 2009
S&P Affirms ADCB ratings at A/Stable/A-1
Abu Dhabi, 5 August 2009: Standard and Poor’s affirmed ADCB ratings at A/Stable/A-1. The ratings report released on 29th July 2009 outlined the key factors underpinning the ratings. Whilst the support and ownership by Abu Dhabi Investment Council has been a key factor in the ratings, the agency amply recognizes the improving domestic commercial position, increasing revenue diversification, good operational efficiency and the bank’s strategy to continue strengthening its customer franchise particularly in the Retail, Islamic and SME segments.
The agency took note that the bank’s funding and liquidity are adequate and that the bank has access to a substantial base of customer deposits. The rating rationale took note of the recent stress in the World/GCC economy and the consequent impact on asset quality of ADCB, however the recent infusion of capital further strengthened the bank and the support from the government of Abu Dhabi, a majority shareholder in ADCB provides financial flexibility whenever needed.
Chief Executive Officer of ADCB, Mr. Ala’a Eraiqat commented “the ratings reflect the affirmation of the bank’s strategy in improving the franchise, risk management profile and capital ratios and validate our efforts towards creating best practice standards, strengthening stakeholders’ confidence and maintaining high performance levels.”
“We, in ADCB, are committed to sustain the growth, profitability, and customer expectations and to enhance our hall mark in terms of performance, innovation, security and quality.” concluded the CEO.
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