Fitch's initial assessment is that Mashreqbank should be able to absorb potential credit losses stemming from the Saad and Al Gosaibi Groups exposure, given its current profitability and capitalisation levels.
As a result, Fitch considers Mashreqbank's 'C' Individual rating to be consistent with the risks currently facing the bank. However, the agency reiterates that there are downside risks to the Individual rating given the difficult operating environment, and the impact this may have on its key financial indicators.
Mashreqbank's IDR of 'A+' reflects Fitch's view of an extremely high probability of support from the government. This reflects the size and franchise strength of the bank in the UAE as well as the support the authorities have provided to the banking system as a whole.
Fitch's view has been further substantiated by last week's announcement that the authorities were planning to offer guarantees for bonds issued by UAE banks.
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Fitch: Mashreqbank's exposure to Saad and Al Gosaibi Groups sizable but manageable
- United Arab Emirates: Monday, July 06 - 2009 at 15:06
- PRESS RELEASE
Fitch Ratings says UAE-based Mashreqbank's exposure to the financially stressed Saad and Al Gosaibi Groups, although sizeable, should be manageable.
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Contacts:Mahin Dissanayake, Dubai
Tel: +971 4 408 1806
Laila Sadek, London
Tel: +44 20 7682 7373
Posted by Rima Ali Al MashniMonday, July 06 - 2009 at 15:06 UAE local time (GMT+4)
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