Fitch Ratings granted SCA license to rate UAE onshore entities

FRL Dubai can now provide credit ratings to "onshore" entities listed in the UAE SCA-controlled stock exchanges

  
Image used for illustrative purpose. Stock Market Exchange on a skyscraper in dubai background.

Image used for illustrative purpose. Stock Market Exchange on a skyscraper in dubai background.

Getty Images

Fitch Ratings’ Dubai branch has been given a license to rate listed onshore entities by the UAE's federal credit rating agency (CRA) regulator, the Securities and Commodities Authority (SCA).

The license allows Fitch Ratings Ltd (FRL) Dubai to provide credit ratings to "onshore" entities listed in the UAE SCA-controlled stock exchanges. This includes those listed on the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX). The license was effective from April 6, 2021.

In accordance with the licence requirements, FRL Dubai moved its office onshore last year from Dubai Media City Free Zone to the Dubai World Trade Centre. As a branch of Fitch's UK-registered Fitch Ratings Ltd, it also continues to be regulated by the Financial Conduct Authority (FCA).

Agencies do not assign credit ratings for Dubai. However, all three agencies, Fitch, Standard & Poor’s and Moody’s rate Abu Dhabi. Fitch and Standard & Poor’s rate Abu Dhabi AA, while Moody’s rates it Aa2 and all three ratings have stable outlooks.

(Writing by Brinda Darasha; editing by Seban Scaria)


brinda.darasha@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Financial Services