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Banks (Finance)

Moody's Periodic Review of Sharjah Islamic Bank PJSC Ratings

Strategic Insights

— 2 min read

Moody's Investors Service has completed a periodic review of the ratings of Sharjah Islamic Bank PJSC and other ratings associated with the same analytical unit. The review was conducted through a portfolio review, which reassessed the bank's financial and operating profile compared to similarly rated peers. The review did not involve a rating committee, and the results do not indicate a credit rating action. The bank's A3 long-term issuer ratings are underpinned by a three-notch uplift from its baa3 Baseline Credit Assessment (BCA), reflecting the bank's direct and indirect ownership by the Government of Sharjah and the UAE authorities' track record of support.

Key Takeaways:

  • The bank's A3 long-term issuer ratings are supported by a three-notch uplift from its baa3 BCA, due to the government's ownership and the UAE authorities' track record of support.
  • The baa3 BCA captures the bank's satisfactory liquidity, weakening core capital buffers, weak asset quality, and modest profitability.
  • The review highlights the risks associated with the bank's real estate investments, which are considered inherently volatile.
  • The bank's rating is subject to review and may be updated in the next periodic review based on changes in credit circumstances.
  • Moody's uses the Banks Methodology (published in November 2019) for this review.
  • The announcement applies only to EU-rated and EU-endorsed ratings.
  • Sharjah Islamic Bank PJSC's A3 long-term issuer ratings are underpinned by a three-notch uplift from its baa3 Baseline Credit Assessment (BCA).
  • The baa3 BCA captures the bank's satisfactory liquidity, weakening core capital buffers, weak asset quality, and modest profitability.
  • The review highlights the risks associated with the bank's real estate investments.
  • The bank's rating is subject to review and may be updated in the next periodic review based on changes in credit circumstances.
  • Sharjah Islamic Bank PJSC has a baa3 BCA.
  • The bank's direct and indirect ownership by the Government of Sharjah reflects the UAE authorities' track record of support.
  • Moody's used the Banks Methodology (published in November 2019) for this review.

Statistics:

  • A3 long-term issuer ratings are underpinned by a three-notch uplift from the bank's baa3 BCA.
  • Moody's practice is to issue a press release after each periodic review, starting from 1 January 2019.
  • 44 20 7772 5456 is the contact number for journalists.
  • Client Service can be contacted at 44 20 7772 5454.
  • The bank's A3 long-term issuer ratings are subject to review and may be updated in the next periodic review based on changes in credit circumstances.

Sources:

  • Moody's Investors Service ("Moody's")
  • "Banks Methodology" published in November 2019
  • Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO")
  • Global Data Point. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)

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