Abu Dhabi Commercial Bank (ADCB) said S&P Global Ratings has upgraded its long-term issuer credit rating to ‘A+’ from ‘A’ with a ‘stable’ outlook.
The upgrade is driven by the bank’s strong financial position and high asset quality, it said.
The upgrade places ADCB among the top three highest rated banks by S&P in the MENA region, the bank said.
ADCB’s strong market position drives significant balance sheet expansion
In a research update, S&P said sound earnings generation and high capital retention still underpin ADCB’s capitalisation, which it views as a key rating strength.
“We believe the bank’s asset quality will continue to benefit from the strengthening of its risk management culture and control framework over the past four years,” the rating agency said.
S&P said it views these improvements, along with a more contained risk appetite, as enduring and therefore positioning ADCB to better navigate economic cycles.
ADCB said its high investment grade ratings support a favourable cost of capital as it implements a new strategy to sustain its velocity of growth, with a target of doubling net profit to AED 20 billion within five years.
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