The outlook for Dubai-based investment bank Shuaa Capital has been upgraded by US-based Moodys Investors Service from negative to stable.
The decision was made in reaction to the lenders efforts to cut costs and restructure its business. Moodys affirmed the banks existing rating of B1.
Shuaa Capital posted a profit of AED3.6m ($871,222) in the third quarter of 2013, marking the second consecutive quarterly profit since the financial crisis. Moodys noted that the bank has established good capitalisation and liquidity levels that provide an adequate buffer against future losses.
Shuaas core businesses were badly hit by the global financial crisis and the bank suffered from a four-year run of annual losses. It was also embroiled in a dispute with Dubai Banking Group and faced fines of $950,000 in 2008 for manipulating the value of shares in state-owned DP World.