· Long- and Short-Term Foreign Currency Ratings are raised to 'A-' and 'A3'
· Financial Strength Rating upgraded to BBB-
· Bank assigned a 'Stable' outlook
Dubai - The Long-Term Foreign Currency Rating of the UAE's Commercial Bank International (CBI) has been upgraded by five rating tiers to 'A-' from 'BB', by Capital Intelligence Ratings (CI), the international credit rating agency. CBI's Short-Term Foreign Currency Rating was also upgraded to 'A3' from 'B.'
The rating upgrade was driven by CBI's continuously improving asset quality and robust capital position, in addition to the strong backing it receives from its largest shareholder, Qatar National Bank.
CBI's improved rating follows the investment grade rating it received earlier this year from Fitch Ratings, which assigned the Dubai-based bank a long-term issuer default rating of 'A-'.
Mark Robinson, Chief Executive Officer of CBI, said: "Over the past year, CBI has focused on strengthening its balance sheet by divesting non-core assets and reducing non-performing loans. The rating upgrade to 'A-' by Capital Intelligence Ratings, in conjunction with Fitch Ratings' 'A-' earlier in the year, are a testament to not only the success of our strategy to-date, but also to the bank's robust fundamentals."
According to CI, CBI "is well-placed to grow its business by leveraging its close connections with Qatar National Bank (QNB) and is therefore in an advantageous position in the domestic market vis-à-vis other banks of similar size. The substantial business support extended by its major shareholder, QNB, as well as the Bank's strong fee and commission income base are other factors supporting the rating upgrade."
Additionally, the Financial Strength Rating of CBI has been upgraded to 'BBB-' from 'BB' with a 'Stable' outlook.
In-spite of a challenging macro-economic environment, CBI has performed well throughout 2016. Driven by the growth of its wholesale and Islamic banking businesses, and an increase in customer deposits, CBI's first half net profit increased to AED 68.7 million.
For further details on CI's credit rating upgrade of CBI, please visit: www.ciratings.com/news/2016/09/14/2184
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About Commercial Bank International (CBI):
CBI is a well-established corporate and retail bank, with a growing SME and Islamic banking business. The Bank was incorporated in 1991 in the Emirate of Ras Al Khaimah and is headquartered in Dubai. CBI shares are listed on the Abu Dhabi Securities exchange (ADX) and the Bank has a long-term issuer default rating of A-, with a Stable Outlook from Fitch Ratings.
Since 2012, CBI has had a strategic partnership with Qatar National Bank (QNB), a 40% shareholder and the largest Bank in the MENA region.
CBI offers a comprehensive portfolio of banking products, as well as tailor-made financial solutions in corporate, Islamic and retail banking - ranging from lending, trade services, cash management and treasury solutions to personal account services, credit cards and finance for homes.
CBI operates through a network of 27 branches with a presence across all seven Emirates in the UAE.
For further information, please contact:
Mohamed Al Tajer
Head of Marketing, Branding & Corporate Communications
+971 4 212 6474
Email: Mohamed.Altajer@cbi.ae
Will Anderson
Partner
Brunswick Gulf Ltd
+9712 234 4600
Email: CBIGulf@brunswickgroup.com
© Press Release 2016
