Moody’s affirms eight #UAE banks' ratings and changes outlook to stable

Moody’s affirms eight UAE banks' ratings and changes outlook to stable

Moody's Investors Service affirmed the long-term ratings of eight UAE banks and changed the outlook to stable from negative on Thursday, saying the move was driven by a recovery in operating conditions in the country.

Moody's said it has changed the outlook to stable from negative on the long-term deposit and issuer ratings of Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Dubai Islamic Bank, HSBC Bank Middle East, MashreqBank, National Bank of Fujairah and The National Bank of Ras-Al-Khaimah.

The rating agency also affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of the eight banks.

“The primary driver for the BCA affirmations is Moody's view that the operating environment for the UAE banks is recovering from the effects of the pandemic. This is expected to support the banks' financial fundamentals, particularly profitability, capital and liquidity,” Moody’s said in a statement.