Abu Dhabi-Mubasher: Standard & Poor's Ratings Services (S&P) affirmed its “A” long-term and “A-1” short-term counterparty credit ratings on Abu Dhabi Commercial Bank (ADCB), maintaining the “Stable” outlook, according to a recent statement.
“The affirmation follows the revision of our assessment of ADCB's business position to strong from adequate,” S&P said.
The bank showed a track record of improving returns over recent years, in addition to balanced earnings generation across different business segments.
“Our ratings also reflect ADCB's strong capital and earnings, based on the bank's strong core earnings generation and our projected risk-adjusted capital (RAC) ratio before concentration adjustments remaining at about 13.5 per cent-14 per cent over our two-year outlook horizon,” the statement highlighted.
S&P assessed the bank's funding as average and its liquidity as adequate. Combined, these factors lead to the firm’s assessment of the bank's stand-alone credit profile (SACP) at “bbb+”, compared with “bbb” previously.
