Fitch affirms ‘BBB+’ rating for Bank of Sharjah with a stable outlook
Bank of Sharjah PJSC (Abu Dhabi SE: BOS) (the “Bank” or the “Group”), one of the leading corporate banks in the UAE, today announced that Fitch, the New York and London-headquartered global ratings agency, has affirmed the bank’s ‘BBB+’ rating.
For the second consecutive year, Fitch has assigned Bank of Sharjah a Long-Term Issuer Default Rating (IDR) of ‘BBB+’ with a stable outlook.
BOS is well established in the UAE, particularly in Sharjah, and enjoys a strong market position. Its franchise is supported by access to Sharjah-government businesses and projects, as well as various community businesses operating in the UAE.
BOS benefits from a stable and moderately concentrated base of customer deposits, which account for the bulk of funding. This is supplemented by senior unsecured issues, which provide good access to capital markets when needed. BOS’s liquidity is healthy with net liquid assets covering 26% of total customer deposits at the end of Q3 2021.
Commenting on this rating, Varouj Nerguizian, Group CEO said: “The affirmation of our ratings underlines Bank of Sharjah’s position as a leader in providing quality services to our customers. The Bank’s success depends on the confidence of our shareholders, customers, and employees. Bank of Sharjah has survived the various financial crises of recent years relatively unscathed. This is a testament to the active involvement of the Bank’s board, management and underlying good governance.”