Moody's Investors Service has assigned long and short term local and foreign currency deposit ratings of Baa3/Prime-3 to UAE-based Invest bank and a baseline credit assessment (BCA) of ba2.

The long-term ratings carry a stable outlook.

 Furthermore, Moody's has assigned a Counterparty Risk Assessment (CR Assessment) of Baa2(cr) to Invest bank. It is the first time Moody's assigns credit ratings to Invest bank.

Invest bank's rating reflect:

 (1) UAE's Strong- macro profile

(2) The bank’s high profitability and capital buffers

These strengths are moderated by the bank:

 (1) Weak and volatile asset quality reflecting very high single borrower and sector concentration risks

 (2) Very high funding concentration and limited business diversification moderated by low reliance on market funding

 (3) Business dependence on key management personnel that exacerbates the aforementioned concentration risks

“We also incorporate into our ratings a high likelihood of support from UAE authorities in case of need,” said Moody’s Investor Service in a statement. – TradeArabia News Service