Mubasher: Moody's Investors Service has downgraded the UAE Invest Bank’s long-term deposit ratings to “Ba3” from “Ba1”, following the two-notch downgrade of the bank's baseline credit assessment (BCA) which was adjusted to “b2” from “ba3”, according to a statement on Tuesday.
Moody's has also downgraded the long-term and the short-term Counterparty Risk Rating to Ba2/Not Prime from Baa3/P-3.
Both the long-term and short-term Counterparty Risk Assessment ratings of Invest Bank were downgraded to Ba2(cr)/Not prime(cr) from Baa3(cr)/Prime-3(cr).
“Invest Bank's long-term deposit ratings carry a negative outlook,” the statement added.
Such downgrade reflects the continued weakening in Invest bank's asset quality, profitability, and capitalisation during the first six months of 2018; this is a result of the bank's continued implementation of a more conservative classification approach, combined with continued high delinquencies amid soft market conditions.
Moody’s added that the negative outlook reflects the risk of further deterioration in the bank's asset quality, profitability, and capitalisation.
Established in 1975 in Sharjah, Invest bank has a market share of 0.6% in terms of total assets at end-June 2018.