Fitch Ratings, a leading credit rating agency, has reaffirmed its confidence in Ajman Bank by maintaining its Long-Term Issuer Default Rating (IDR) at "BBB+" with a Stable Outlook. This rating signifies a moderate level of creditworthiness, indicating that investors view Ajman Bank as a relatively safe bet for their investments.
The Stable Outlook attached to the rating suggests that Fitch expects Ajman Bank's financial profile to remain steady in the foreseeable future. This positive assessment is a testament to the bank's robust financial performance and its commitment to sound risk management practices.
Mustafa Al Khalfawi, Group CEO of Ajman Bank, expressed his satisfaction with the rating, stating, "We are proud to receive the 'BBB+' rating from Fitch. This endorsement validates our robust financial outlook and strategic direction." He elaborated that the rating reflects not only the bank's operational resilience but also its unwavering dedication to upholding the highest standards of corporate governance and financial integrity.
Fitch highlighted several factors that contributed to their positive rating for Ajman Bank. One such factor is the bank's strong financial performance within a supportive operating environment. The UAE banking sector has experienced robust growth in recent years, and Fitch expects this trend to continue, albeit at a slightly slower pace in 2024 due to rising interest rates and moderating demand for credit following the post-pandemic economic recovery.
Despite these anticipated changes, Fitch remains confident in the overall health of the UAE banking sector, with Ajman Bank well-positioned to navigate the upcoming year. The bank's sound financial metrics, including a concentrated yet stable funding base and ample liquidity, further bolster its creditworthiness.
Fitch Ratings also acknowledged Ajman Bank's Viability Rating (VR) of "b+". While VRs typically fall below IDRs, this slight differentiation reflects the potential for extraordinary support from the UAE authorities, should such a situation arise. This implicit support serves as an additional layer of security for investors.
Fitch Ratings' affirmation of Ajman Bank's creditworthiness underscores the bank's financial strength and its commitment to responsible banking practices. With a Stable Outlook attached to the rating, investors can be confident in Ajman Bank's ability to weather potential economic headwinds and deliver sustainable growth in the years to come.