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- The rating confirms ECI’s strong financial position and its capability to protect the UAE’s exporters and investors in the international marketplace
Dubai: Etihad Credit Insurance (ECI), the UAE Federal Export Credit company, has been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings.
The rating reflects ECI’s systemic importance to the UAE given its important role in the diversification of the country’s economy, and confirms ECI’s strong financial position and capability to protect UAE’s exporters and investors in the international marketplace.
The federal export credit company, which was founded to protect UAE-based companies associated with non-oil export activities against non-payment, protect investments outside of UAE against political risks and support corporate bidding for international tenders, “plays a significant role in the promotion of UAE’s non-oil exports, trade, investments and strategic sectors development in line with the economic agenda of UAE’s vision 2021,” Fitch said.
Emirates NBD Capital, a 100% owned subsidiary of Emirates NBD Bank PJSC, a DFSA regulated entity based in the DIFC that offers investment banking and capital financing solutions acted as Ratings Advisor to ECI.
Underlining ECI’s significant role in the UAE economy, Massimo Falcioni, CEO of Etihad Credit Insurance said: “We are proud to receive AA- rating, one of the strongest credit ratings for any financial institution in the UAE and the region. This will provide confidence in the capability of the company to protect the UAE-based exporters and investors while pursuing their expansion plans and export trade financing, leveraging ECI’s guarantees goodwill from the banking sector and financial lenders”
Emphasising the importance of ECI’s rating, Falcioni added, “The strong rating reinforces ECI’s position in the export credit market, which will further raise the profile of ECI and pave the path for more major international players to partner with the company.”
According to Fitch, ECI’s capitalisation is “very strong, supported by a strong capital base and currently limited exposure to risk premiums. Total insured exposure is expected to amount to AED 109 million as at end-2019 whereas total paid-in capital is AED 250 million, with a further AED 750 million committed by shareholders.”
Fitch added that ECI’s investments are “highly liquid” and “prudently allocated” while its reinsurance panel is “strong and well diversified mainly comprising companies rated ‘A’ and above”.
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About Etihad Credit Insurance
Etihad Credit Insurance (PJSC) was established by UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah and Ajman. The company started its operations in February 2018. ECI plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments and strategic sectors development, in line with UAE Vision 2021 agenda.
It is tasked to accelerate and sustain national economic diversification as well as support the export and re-export of UAE goods, works, services, and the foreign investments of the UAE businesses through a range of export credit, financing and investment insurance products.
To provide UAE businesses with solutions that meet their growth objectives locally and internationally, ECI builds a comprehensive platform of strategic partnerships across government, insurers, re-insurers, brokers, banks and lenders, regional and international Export Credit Agencies, governments and trade promotion agencies in addition to world organisations for economic development.
For media inquiries, please contact:
Abeer Al Mutawa
Director Marketing & Communications
Etihad Credit Insurance
+971 4 245 4445
abeer.almutawa@eci.gov.ae
Sonal Salvi
PR Manager
New Perspective Media
+971 58 206 9825/ +971 4 244 9642
sonal@newperspectivemedia.com
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