Moody’s: Dubai Islamic Bank’s Long-Term Issuer Rating Affirmed at A3; Outlook Changed to Negative

Moody’s Investors Service (Moody’s) has affirmed the long-term issuer rating of Dubai Islamic Bank (DIB) at A3, and has also affirmed DIB’s Baseline Credit Assessment (BCA) and Adjusted BCA at ba2. Moody’s has changed its Outlook on DIB to Negative from Stable.

Despite the possible negative impacts on DIB’s financial fundamentals posed by the current challenging macro-economic environment, the affirmation of DIB’s long-term issuer rating reflects strong capitalisation, funding as well as liquidity of DIB. The affirmation also considers the very high possibility of support from the Government of the United Arab Emirates (UAE) if need be, backed by the UAE’s strong track record of...