Mashreq rating revised on deteriorating assets

* username: rupertbu

Fitch Ratings yesterday downgraded UAE-based Mashreqbank's (Mashreq) rating to 'C/D' from 'C' and kept it on Rating Watch Negative (RWN) due to its deteriorating asset quality.

Simultaneously, its long-term issuer default (IDR) 'A' with stable outlook, short-term IDR 'F1' and support rating '1' have been affirmed. The support rating floor is affirmed at 'A'.

The downgrade of the Individual rating reflects Fitch's concerns on the bank's deteriorating asset quality owing to its substantial exposures to the troubled Saudi groups, Saad and Algoosaibi, which are now impaired (and around 50 per cent reserved), exacerbated by large volumes of retail defaults in the UAE during the year, although this remains performing.