Moody's Investors Service downgraded its rating on Shuaa Capital citing the likelihood that the Dubai investment bank's results will remain negative or at best weak given the "uncertainties" around executing a new business strategy in a difficult environment.
The Moody's analysts Nitish Bhojnagarwala and Yves Lemay lowered their rating to "B1", down from "Ba3" and assigned a "negative" outlook on the company.
"Shuaa faces many challenges in building a sizable franchise given strong competition in the sector and the tough regional and global investment environment," they said. Shares of Shuaa tumbled 4.5 per cent at the bell on Wednesday to trade at 75 fils a share on the Dubai Financial Market General Index. Shuaa, established in 1979, is among the oldest investment banks in the region.
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