Mubasher: Moody's Investors Service issued a report on Wednesday on UAE’s United Arab Bank PJSC, downgrading its long-term deposit rating to Baa2 from Baa1, following the one-notch downgrade of the bank's baseline credit assessment (BCA) and adjusted BCA to ba1 and baa3 respectively.
UAB's long-term deposit ratings carry a negative outlook. Today's rating action concludes the review for downgrade initiated on 16 November 2015, said the ratings agency. It added that the rating downgrade reflects UAB's (1) weakening asset quality metrics and the risk of a further increase in problem loans in coming quarters, and (2) related profitability pressure.
In January, the Abu Dhabi-listed bank said that its board of directors proposed no dividends for the fiscal year 2015.
UAB reported losses of AED 166.15 million ($455.24 million) in FY15, against profits of AED 605.4 million ($164.8 million) in FY14.
