Abu Dhabi Commercial Bank’s credit rating affirmed at A1 by Moody’s, showing steady recovery

Hossam Abdelnaby (Abu Dhabi)

Credit rating agency Moody’s (Moody’s) affirmed Abu Dhabi Commercial Bank’s long-term and short-term investment ratings at A1.
Moody’s pointed out that affirming the bank’s basic credit rating at “baa3” reflects the bank’s good financial performance with a steady recovery after the pandemic in 2021 and 2022, and the then strong results in 2023.
She said this rating reflects strong capital, along with strong funding and liquidity, as well as profitability recovery, indicating that these credit strengths are balanced by a relatively weak, albeit weak, rating. ‘ development, asset quality and credit concentration.
Credit rating agency Moody’s believes the bank’s underlying credit rating of “baa3” reflects asset quality (albeit under better management) and high credit concentration. It said the ratio of the bank’s non-performing loans to total loans (Moody’s ratio, excluding loans to banks) was 3.6% as of December 2023, down from 8% in 2020. The report said that the outlook was stable for Abu Dhabi Commercial Bank’s long-term deposit ratings reflect the group’s expectations. quality and concentration of credit, stressing that one of the things that could lead to an increase in the long-term rate of the banks would happen… A significant improvement in the quality of the bank’s assets.