Ratings agencies study banks

Ratings agencies are starting to scrutinise the balance sheets of UAE banks as the extent of their exposure to two troubled Saudi family conglomerates emerges.

Fitch Ratings, one of the world’s largest agencies, yesterday confirmed the “C” rating of Mashreqbank, based in Dubai, saying its “sizeable” exposure to the Saad and Al Gosaibi groups was “manageable”.

“Mashreqbank should be able to absorb potential credit losses stemming from the exposure given its current profitability and capitalisation levels,” Fitch said.