Moody's: Dubai, Emirates bank merger positive

Moody's Investors Service said it considers the merger between Emirates Bank International PJSC and National Bank of Dubai PJSC as a positive development for both banks and for the banking industry in the United Arab Emirates and the Gulf Cooperation Council.

Both banks have bank financial strength ratings of C- and local- and foreign-currency deposit ratings of A1/Prime-1.

The outlook is stable.

"Moody's believes that [the combined company] will benefit from a stronger franchise and capitalization, an expanded product range, greater geographic reach and better positioning in the corporate and retail business. Going forward, the synergies expected will generate a better value proposition for the merged entity," Peter Carvalho, vice president and senior analyst at Moody's Middle East office in Dubai, said in a written statement.

Concerns are achieving a seamless integration of the two banks, the impact on the business as the banks operate independently while working toward common merger goals and the possible attrition of business, the agency said.

© 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.