Moody's revises outlook to negative on eight UAE banks

The global ratings agency regards the coronavirus outbreak as a social risk under its ESG  framework

  

Global ratings agency Moody’s on Friday had changed its outlook to negative from stable for eight UAE banks amid the COVID-19.

The eight banks are: Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, HSBC Bank Middle East, Abu Dhabi Islamic Bank, The National Bank of Ras al-Khaimah and National Bank of Fujairah.

Moody’s affirmed the banks’ ratings but said the change of outlook reflected “the potential material weakening in their standalone credit profiles, amid a challenging operating environment in the UAE due to the coronavirus outbreak, low oil prices and pre-existing economic challenges.”

Moody's regards the coronavirus outbreak as a social risk under its ESG  framework, given the substantial implications for public health and safety.

The UAE Ministry of Health and Prevention on Saturday reported 388 new cases of the Covid-19 coronavirus, bringing the total number of confirmed cases in the country to 44,433. One new death was also reported.

(Writing by Seban Scaria, editing by Daniel Luiz)

seban.scaria@refinitiv.com

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