Mubasher: Moody's Investors Service has affirmed on Thursday Abu Dhabi Islamic Bank's (ADIB) "A2/Prime-1" long- and short-term domestic and foreign currency issuer ratings, according to a statement.
The rating reflects Moody's expectation of a very high probability of government support, if needed.
The agency upgraded the bank's standalone baseline credit assessment (BCA) to "ba1" from "ba2".
The upgrade shows Moody's view that the bank has strengthened its funding structure on the back of low cost and stable deposit base, which is expected to be resilient to lower oil prices and tightened liquidity in the UAE banking system.
The upgrade also reflects Moody's expectation that ADIB will sustain the improvements in asset quality and provision coverage despite slowing economic conditions in the UAE.
The outlook on ADIB's ratings remains negative, in line with the negative outlook of the sovereign rating of the UAE government.
