S&P drops Abu Dhabi Commercial Bank

Standard & Poor's said it lowered its long- and short-term counterparty credit ratings on Abu Dhabi Commercial Bank to A-/A-2 from A/A-1.

The outlook is stable.

"The downgrade reflects its view that Abu Dhabi Commercial Bank's credit measures have continued to deteriorate beyond its earlier expectations and relative to those of similarly rated peers," said S&P credit analyst Goeksenin Karagoez.

The bank's large proportion of construction and real estate loans, its exposure to Dubai World and its high single-party concentration increases the challenges it faces, and in its view, is hindering management's ability to tackle problems, according to S&P.

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