Moody's cuts Emirates

Moody's Investors Service said it downgraded the local- and foreign-currency debt and deposit ratings of Emirates NBD PJSC by one notch to A3/prime-2 from A2/prime-1. Moody's also said it downgraded the debt issued through entities guaranteed by the company, namely Emirates NBD, Global Funding Ltd. and EIB Sukuk Co., to the new rating level. The bank's subordinated debt rating also has been downgraded to Baa1 from A3.

Moody's also confirmed Emirates NBD's bank financial strength rating at D+, which maps to a baseline credit assessment of Ba1.

The outlook is negative, reflecting the moderate risk of further asset quality deterioration impacting the bank's ratings.

While the company's recurring earnings and capitalization levels remain good, Moody's said it will continue to monitor liquidity and funding for all Dubai-based banks given the continued risk aversion in global debt capital markets and the intensified competition for deposits in the United Arab Emirates.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.