The outlook is stable.
The ratings reflect the bank's good commercial position, strong financial profile, and robust liquidity. Negative rating factors are the high competition in its core market that is putting pressure on the interest margin, low geographic diversification, and the cyclicality of the operating environment.
"Standard & Poor's considers Mashreq a systemically important bank and the United Arab Emirates interventionist with regard to its banking sector," said Standard & Poor's credit analyst Mohamed Damak.
Thus, the long-term rating on Mashreq includes a one-notch uplift from the stand-alone rating to reflect our expectation of high likelihood of government support in case of need.
"We expect that the bank will continue to exploit opportunities in its core market and keep a relatively conservative strategy toward growth," said Mr. Damak.
The ratings could be raised if the bank increases its diversification, while maintaining its strong financial profile. The ratings could, however, come under pressure if capitalization, financial performance, or asset quality deteriorate significantly, or if expansion overseas is excessively aggressive.
Browse
related articles
United Arab Emirates-based Mashreqbank rated 'A/A-1'; outlook stable
- United Arab Emirates: Monday, June 25 - 2007 at 16:37
- PRESS RELEASE
Standard & Poor's Ratings Services said it had assigned its 'A' long-term and 'A-1' short-term counterparty credit ratings to United Arab Emirates-based Mashreqbank (Mashreq).
Related stories
Also consider reading:
Digg
Facebook
LinkedIn
Twitter
Browse
related articles
Today's most read articles:
- » Nokia N900 to hit UAE stores
- » Abu Dhabi Tourism Authority plans measured expansion for 2010
- » Boeing to showcase tailored portfolio of products and services at Dubai Air Show 2009
- » Burj Dubai enters final leg of construction
- » Marriott International announces the signing of five hotels for its newly established Middle East and Africa region
Log in to request more information from Standard & Poor's
Notes and media contacts
Ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Ratings in the left navigation bar, select Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017.Analyst Contacts:
Mohamed Damak, Paris (33) 1-4420-7322
Anouar Hassoune, Paris (33) 1-4420-7318
Armelle Sens, Paris (33) 1-4420-6740
Financial Institutions Ratings Europe
Press Office Contacts:
London Media Hotline: +44 20 7176 3605
Paris: +33 1 44 20 6740
Frankfurt: +49 69 33999 225
Milan: +39 02 72 111 245
Madrid: +34 91 389 6944
Moscow: +7 495 783 4017
Stockholm: +46 8 440 5916
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
Posted by Lara Lynn Golden, News EditorMonday, June 25 - 2007 at 16:37 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Tue Jun 26 2007.
Disclaimer:
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of AME Info FZ LLC / Emap Limited. AME Info FZ LLC / Emap Limited is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.
For details about submitting your stories, please read the guide - all content published is subject to our terms and conditions
It looks like you are using a Mac - check out our 
Web Feeds