A3 (short term) and BBB (long term) with stable outlook
BBN Report
ABU DHABI/October 25-2020: The international rating agency, Capital Intelligence (CI), has reaffirmed Finance House’s investment grade corporate credit ratings at A3 (short term) and BBB (long term), both with a stable outlook,
Mohammed Abdulla Alqubaisi, chairman of Finance House, said the CI’s reaffirmation of the ratings of Finance House amidst an ongoing challenging business environment, locally and globally, is indeed a proud achievement for the company.
Resilience acknowledged
“It is an independent confirmation of the resilience of our business model and execution capabilities that have delivered consistent results, not only during economic booms, but also under difficult economic conditions,” Alqubaisi added.
TK Raman, group chief financial officer (CFO), said the year 2020 has revealed unprecedented challenges that necessitated the adoption and implementation of unconventional business strategies.
“We are glad that our efforts in this direction have been acknowledged, and this has reflected in our investment corporate credit ratings by CI,” Raman said.
According to CI, the ratings are supported by a strong capital base, satisfactory capital ratios and generally good liquidity ratios that result from a strong deposit base, which continues to largely fund the loan portfolio, despite the fact that reliance on borrowed funds has increased.
Operating profitability of Finance House is also good, but a high cost of credit has kept the profitability modest. The ratings are also supported by a strong and experienced management team comprising seasoned bankers,
