Abu Dhabi, United Arab Emirates, 17 April 2023: Fitch Ratings, one of the top three global credit rating agencies, has affirmed its ‘AA-‘ Long-Term Issuer Rating (IDR) for Emirates Development Bank (‘EDB’ or ‘the Bank’) with a stable outlook.
The agency maintained EDB at ‘AA-’, its fourth highest investment grade rating, which reflects the bank low credit risk. The ‘AA-’ rating is a high credit rating, indicating Fitch’s analysis of EDB’s highly strong capacity to meet its financial obligations.
“We are very pleased to receive the ‘AA-’ rating from Fitch”, said Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB. “This rating affirmation is a solid endorsement of EDB’s creditworthiness and strong capitalisation, positioning the Bank for expected rapid lending growth. Fitch’s assessment is an exceptional achievement for EDB as the Bank continues to support the UAE’s national development agendas in the strategic areas of advanced technology, food security, healthcare, renewables, and manufacturing, thereby driving the nation’s industrial growth and promoting economic diversification.”
According to Fitch, EDB has a very low credit risk, the rating on the Bank also carries a stable outlook, as Fitch does not expect any significant changes in the bank’s financial profile in the near term.
In assigning the rating, Fitch considered the bank’s important and clearly defined federal policy role; its 100% strategic federal government ownership. Fitch noted EDB’s strategic importance to the UAE, as a major lender to strategic technology and industrial sectors in the UAE. The bank also supports economic development through direct and indirect lending and non-financial support to SMEs.
In 2023, EDB is redoubling its efforts to support specific sectors through its financing activities. Its five priority sectors now comprise manufacturing, advanced technologies, healthcare, food security and renewables. The addition of ‘renewables’ comes as the bank continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy in alignment with the UAE government’s visions and priorities.
Fitch Ratings provides credit ratings for banks and other financial institutions based on their creditworthiness and financial strength. The ratings range from ‘AAA’ (highest) to ‘D’ (default).