TAIB rating upgraded by Capital Intelligence

The Outlook for the Bank has been termed "Stable" and it is noted that the balance sheet remains liquid.

Mr. Iqbal G. Mamdani, TAIB's Vice Chairman and Chief Executive Officer, commented, "We are certainly pleased with this development -- particularly in light of our plans to further strengthen the Bank very soon."

In its rating rationale, Capital Intelligence [CI] has, inter-alia, stated that "CI raises TAIB Bank's foreign currency long-term and short-term ratings to BBB+ and A2 respectively in recognition of Dubai Financial Group (DFG)'s acquisition of 60% of the Bank's shares."

It also states that the rating action reflects the high probability that TAIB Bank could rely on support from DFG, part of the financially strong Dubai Holding.

The CI report comments that TAIB's profitability is robust as measured by the ROAA ratio, but is susceptible to volatility due to the reliance on investment and trading income.

Furthermore, CI's Support Rating of 2 denotes that the likelihood of support is very high and that the ability and willingness of potential supporters to provide sufficient and timely support is very strong.

The CI report also notes that overall asset quality is good, that concentration risk has been significantly reduced in recent years, and that liquidity and capital adequacy have historically been the Bank's major strengths.