Al Hilal Bank, an Abu Dhabi based Islamic bank, has announced that its viability rating (VR) has been upgraded by global rating agency Fitch Ratings.

Fitch has also affirmed the long-term and short-term issuer default ratings (IDR) of Al Hilal as part of its second peer review of the UAE banking sector.

The VR upgrade represents a strong vote of confidence for Al Hilal Bank’s steady growth, solid track record, rising profitability, and healthy asset quality. It also attests to the exceptional reserve coverage and satisfactory capitalisation of the bank, said the bank.

The affirmation of the bank’s long-term IDRs, Support Ratings and Support Rating Floors, on the other hand, reflects the extremely high probability of support available from UAE authorities and the Abu Dhabi Governments, it said.

Al Hilal Bank’s latest ratings achievement sustains the momentum of the awarding of an A1 rating by Moody’s and an A+ by Fitch in 2013, representing the highest credit ratings ever given to an Islamic Bank in the UAE.

The bank continues to garner high rankings for its exceptional ability to manage risk and enhance its infrastructure while constantly demonstrating innovation and excellence.

Mohamed Jamil Berro, Group CEO, Al Hilal Bank, said: “It is a great honour to be recognised by respected international organisations such as Fitch Ratings for our efforts to uplift the role of Islamic banking in regional and global finance.  This latest achievement validates the success of our quality and expansion plans and will definitely guide us in aiming for even greater heights for the next year and beyond. It is also a welcome reward for the loyalty and support of our valued customers and partners to whom we commit the highest levels of service excellence.”  

Al Hilal Bank’s latest Fitch Ratings are as follows: Long-term IDR affirmed at 'A+' - Outlook Stable; Short-term IDR affirmed at 'F1'; Viability Rating upgraded to ‘bb’ from ‘bb-‘; Support Rating affirmed at '1'; Support Rating Floor affirmed at ‘A+’; The Al Hilal Bank Sukuk Company’s Trust certificate issuance programme was also affirmed at 'A+'/'F1', with its senior unsecured certificates affirmed at 'A+'. – TradeArabia News Service