Capital Intelligence raises the foreign currency long-term rating of Sharjah Islamic Bank to A

The upgrade follows a re-assessment of the ability and willingness of the UAE authorities to provide support if necessary. The likelihood of official support takes into account, inter alia, recent improvements in sovereign creditworthiness and Capital Intelligence's expectation that the government of Abu Dhabi would ultimately be willing to help distressed financial institutions owned by the federal and / or local governments, should the need arise.

The foreign currency short-term rating is maintained at A2 and the financial strength rating at BBB+. All ratings have a Stable outlook. The bank's good management, sound asset quality and strong, sustainable core profitability are underlying factors supporting the ratings. SIB raised sizeable capital this year. The funds will be used to drive the growth of the domestic network, overseas expansion, direct investments and the formation of new subsidiaries. The strong growth in business and higher investment related earnings led to a robust increase in net profit last year. Asset quality ratios remain strong with very few delinquencies in the financing portfolio. The Bank's performance in the current year has been good reflecting the substantial opportunities that continue to exist in the UAE.