• Dunia’s long-term Issuer Default Rating has been upgraded to BB from BB-
  • The step follows Fitch’s second 2015 peer review of the UAE banking sector

UAE finance company Dunia’s long-term Issuer Default Rating (IDR) has been upgraded to BB from BB- by the US’ Fitch Ratings.

The move follows the agency’s second 2015 peer review of the UAE banking sector. The agency also confirmed Dunia’s short-term IDR at B.

On 5 August, Fitch Ratings stated that Dunia is a non-bank financial institution and its ratings do not factor in any state or institution support. Its rating reflects an improved funding profile, diversification of current bank lines, a growing franchise, strong loan growth, a track record of seven years and dependence on rate-sensitive concentrated corporate deposits.

“We have been careful to manage our balance sheet and risk profile, maintaining high levels of capital adequacy and improving efficiencies,” says Rajeev Kakar, CEO and managing director of Dunia. “Our approach has worked and enabled us to grow, support the local people and communities we serve, while still returning strong returns to our shareholders.”

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