NBF receives investment grade rating from Moody's and S&P

FUJAIRAH, 1st April, 2014 (WAM) -- National Bank of Fujairah, NBF, today announced that it has received a Baa1/Prime-2 deposit rating from Moody?s and a BBB+/A-2 rating from Standard & Poor?s (S&P), highlighting the success of the bank?s strategy to date as a bank for business in the U.A.E..

Moody?s commented that the ratings built on the positive profile the bank has established in recent years as one of the leading providers of business banking and trade finance solutions in the U.A.E.. As a growing franchise that is supported by a comprehensive risk management framework, solid capitalisation metrics underpinned by stable profitability levels and healthy liquidity, the bank has achieved a well-established position in the corporate middle market.

This recognition follows a record year for the bank where it achieved its highest ever net profit of AED 393.1 million with total assets growing 22.3% to AED 21.5 billion.

S&P highlighted that the stable outlook reflects the expectation that NBF will remain a conservatively-managed niche bank in the U.A.E.?s trade finance and business banking markets, with no major changes expected in its business or financial profile over the next two years.

The ratings from both agencies were also based on the understanding that timely and sufficient systemic support would also be provided to NBF in case of need due to the bank?s ownership structure and the country?s strong support of the local banking sector.

On the occasion, H.H. Sheikh Saleh bin Mohamed bin Hamad Al Sharqi, NBF Chairman, said, "We are extremely pleased with these external credit ratings, which are testament to how far the bank has come since it began operations 30 years ago, the remarkable progress it has made in recent years and most importantly, the recognition of NBF?s long-term approach of growing in a sustainable and prudent fashion. With a well-capitalised asset base and stable risk management framework, we are confident that these ratings will send a strong signal to the market of NBF?s capacity for balanced future growth."

Copyright Emirates News Agency (WAM) 2014.