Dubai - Mubasher: Moody's Investors Service upgraded Dubai Islamic Bank’s (DIB) local and foreign currency long-term issuer ratings to A3 from Baa1 and, and changed the outlook on the bank's long-term issuer ratings to stable from positive.
The ratings agency also upgraded the bank’s baseline credit assessment (BCA) and adjusted BCA to ba2 from ba3, according to a report issued on Thursday.
At the same time, the long and short-term counterparty risk assessment has been upgraded to A2 (cr) from A3 (cr) and P-1 (cr) from P-2 (cr) respectively.
The upgrade of DIB's rating reflects the significantly improved asset quality and provisioning coverage, the solid and improving profitability, driven by the bank's strong Islamic franchise and lower impairments and the sound capitalisation and liquidity, the report noted.
Moody’s also indicated that the upgrade of DIB's issuer rating takes into account the higher BCA and the continued expectation of a very high level of support from the United Arab Emirates government.
