S&P ups Abu Dhabi

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

The outlook is stable.

The upgrade follows the bank's agreement on June 17 to sell its 24.9% stake in RHB Capital Bhd. in Malaysia, the agency said. The rating action reflects the bank's improved stand-alone credit profile, which S&P raised to BBB from BBB-.

The sale proceeds will boost the bank's capitalization, which in turn will likely result in a pronounced improvement in the estimated risk-adjusted capital ratio for Abu Dhabi Commercial Bank and a subsequent decrease in its single-party concentration relative to its capital base, the agency added.

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