Fitch Ratings affirms Bank of Sharjah’s IDR at 'BBB+'; outlook stable

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Fitch Ratings has affirmed Bank of Sharjah’s long-term issuer default rating (IDR) at 'BBB+' with a stable outlook.

The rating agency upgraded the bank’s viability rating (VR) to ‘b-‘ from 'ccc+', according to a press release.

Fitch based the VR upgrade on the bank’s enhanced consolidated capitalisation, attributed to the reclassification of Emirates Lebanon Bank (ELB), its wholly-owned subsidiary in Lebanon, to the assets-held-for-sale category.

The agency also recognised the new management's commitment to divesting non-core assets and resolving legacy loans, alongside implementing a revamped business model with a strong focus on improving profitability.

Mohamed Khadiri, CEO of Bank of Sharjah, stated: “We remain committed to delivering sustainable growth and value for our shareholders while maintaining our focus on prudent risk management and customer satisfaction.”

“We will continue to pursue our strategic goals, driving forward with our new strategy and achieving organic growth with a renewed focus on profitability,” Khadiri added.

It is worth highlighting that Bank of Sharjah recorded net profits attributable to owners amounting to AED 80.67 million in the first quarter (Q1) of 2024.