Dubai - Mubasher: Moody's Investors Service has affirmed Emirates NBD's credit rating at A3, with a ‘Stable’ outlook, according to a recent report.
Moody's expects Emirates NBD's retail franchise, the largest in the UAE, to continue providing a competitive edge, in terms of stable, granular and low cost current and saving account funding base, the report said.
"The bank benefits from being mainly exposed to the diversified Dubai economy, which leaves it less vulnerable to the funding pressure arising from lower oil prices that have affected some regional peers as lower oil revenues have translated into lower government deposit inflows in the banking system," VP-Senior Credit Officer at Moody's Olivier Panis said.
The UAE bank has expanded its deposit base by 11% in 2015 when compared the 4% average achieved by other banks across the country, in spite of reduced liquidity flows and the GCC economic slowdown. “This allowed the bank to grow its lending activity above that of the market rate, while simultaneously reducing its loan-to-deposit ratio,” the report noted.
