gcc credit rating handbook - national bank of abu dhabi · gcc credit rating handbook 29 april,...

1

GCC credit rating handbook

29 April, 2015

2 2

To the fullest extent allowed by applicable laws and regulations, National Bank of Abu Dhabi PJSC (the “Bank”) and any other affiliate or subsidiary of the Bank, expressly disclaim all warranties and representations in respect of this communication. The content is confidential and is provided for your information purposes only on an “as is” and “as available” basis and no liability is accepted for or representation is made by the Bank in respect of the quality, completeness or accuracy of the information and the Bank has undertaken no independent verification in relation thereto nor is it under any duty to do so whether prepared in part or in full by the Bank or any third party. Furthermore, the Bank shall be under no obligation to provide you with any change or update in relation to said content. It is not intended for distribution to private investors or private clients and is not intended to be relied upon as advice; whether financial, legal, tax or otherwise. To the extent that you deem necessary to obtain such advice, you should consult with your independent advisors. Any content has been prepared by personnel of the Global Markets at the Bank and does not reflect the views of the Bank as a whole or other personnel of the Bank

Disclaimer

3 3

Welcome to our “GCC credit rating handbook”. The report provides a comprehensive list of credit ratings for prominent GCC entities from the three leading rating agencies – Moody’s, S&P and Fitch – simply listed in alphabetical order for ease of use. Many of you may find the report helpful as a reference document when dealing with GCC fixed income instruments. We have also provided an overview/comparison of the credit quality of the main issuers in the GCC region (slide #4) as follows: Credit rating of each entity along with its peers, categorised under three subheadings, namely Sovereigns, Financials &

Corporates

We have used “composite ratings” for this analysis – i.e. the average of the ratings assigned by three leading rating agencies Moody’s, S&P and Fitch – in order to provide a holistic view of the credit strength of each bank.

If you have any feedback on the report, or indeed would like to discuss any of the point highlighted, please do contact me. Regards, Chavan Bhogaita Market Insights & Strategy Global Markets NBAD [email protected] +971 2 6110 127

Foreword

4 4

GCC entities - Credit quality (based on composite credit ratings)

GCC Sovereigns GCC Corporates

GCC Financials

Mu

bad

ala

IPIC

TDIC

Wah

a C

apit

al

Qat

ari D

iar

Qat

ar P

etro

leu

m

ETIS

ALA

T

RA

SGA

S

Ind

ust

ries

Qat

ar

SEC

O

Do

lph

in E

ner

gy

QG

TS (

Nak

ilat)

SAB

IC

Sau

di T

elec

om

Co

Oo

red

oo

(Q

tel)

TAQ

A

QR

ES C

o

DEW

A

MA

F

Ald

ar

DP

Wo

rld

DIF

C In

vest

men

t

Emaa

r M

alls

Grp

KIP

CO

Mu

mta

laka

t

Du

bai

Inv

Par

k (D

IP)

Emaa

r P

rop

BA

TELC

O

DA

MA

C

JAFZ

Inve

stco

rp

Dar

AlA

rkan

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Co

mp

osi

te R

atin

g

AA

AA- A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

AA+

B-

Un

ited

Ara

b E

mir

ates

(U

AE)

Emir

ate

of

Ab

u D

hab

i

Stat

e o

f Q

atar

Stat

e o

f K

uw

ait

Kin

gdo

m o

f Sa

ud

i Ara

bia

Emir

ate

of

Ras

Al-

Kh

aim

ah

Sult

anat

e o

f O

man

Emir

ate

of

Shar

jah

Kin

gdo

m o

f B

ahra

in

5

6

7

8

9

10

11

12

13

14

15

Co

mp

osi

te R

atin

g

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

Note: Please see appendix for the methodology of calculating composite credit rating; Source: Bloomberg; NBAD

ISD

B

NB

AD

QN

B

NB

K

AD

CB

UN

B

Al-

Hila

l

Al K

hal

ij

Sau

di B

riti

sh

BSF

NC

B

Sam

ba

Al R

ajh

i

Riy

ad B

ank

Ind

Ban

k o

f K

uw

ait

Ku

wai

t In

t B

ank

FGB

AD

IB

Do

ha

Ban

k

QIB

QII

B

CB

Q

Sau

di H

olla

nd

i

Ara

b N

atio

nal

Ban

k

Al A

hli

Ban

k o

f K

uw

ait

KFH

CB

K

Ban

k M

usc

at

HSB

C B

ank

Om

an

Om

an A

rab

Ban

k

ENB

D

DIB

No

or

Ban

k

Emir

ates

Isla

mic

Ban

k

Sau

di I

nv

Ban

k

Bo

ub

yan

Ban

k

Gu

lf B

ank

Gu

lf In

t B

ank

Gu

lf In

v C

orp

CB

D

Tam

wee

l

Mas

hre

q

Ban

k o

f Sh

arja

h

SIB

Un

ited

Ara

b B

ank

RA

KB

AN

K

Bu

rgan

Ban

k

Ah

li U

nit

ed B

ank

NB

O

Ban

k D

ho

far

Ban

k So

har

Ah

li B

ank

NB

B

AB

C

5

6

7

8

9

10

11

12

13

14

15

16

17

Co

mp

osi

te R

atin

g

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

5 5

GCC entities’ credit rating

Entity Entity type

Country Bloomberg

ticker

Moody's S&P Fitch Composite Rating Rating Outlook Rating Outlook Rating Outlook

Abu Dhabi (Emirate of Abu Dhabi) Sovereign Abu Dhabi (UAE) ADGB Aa2 STABLE AA STABLE AA STABLE AA

Abu Dhabi Commercial Bank Financial Abu Dhabi (UAE) ADCB A1 STABLE A STABLE A+ STABLE A+

Abu Dhabi Islamic Bank Financial Abu Dhabi (UAE) ADIBUH A2 STABLE NR NR A+ STABLE A

Abu Dhabi National Energy Company Corporate Abu Dhabi (UAE) TAQAUH A3 STABLE A STABLE NR NR A-

Ahli Bank SAOG Financial Oman ABOBOM NR NR NR NR BBB+ STABLE BBB+

Ahli United Bank BSC Financial Bahrain AUBBI NR NR BBB+ STABLE BBB+ STABLE BBB+

Al Ahli Bank of Kuwait Financial Kuwait ALAHKW A2 STABLE NR NR A+ STABLE A

Al Khalij Commercial Bank QSC Financial Qatar ALKHAL NR NR NR NR A+ STABLE A+

Al Rajhi Bank Financial Saudi Arabia RJHIAB A1 STABLE A+ NEG A+ STABLE A+

Aldar Properties PJSC Corporate Abu Dhabi (UAE) ALDAR Baa3 STABLE BBB- STABLE NR NR BBB-

Al-Hilal Bank Financial Abu Dhabi (UAE) ALHILA A1 STABLE NR NR A+ STABLE A+

Source: Bloomberg; NBAD

6 6


Entity Entity type

Country Bloomberg

ticker


Arab Banking Corp Financial Bahrain ABCORP Ba1 POS BBB- STABLE BBB- STABLE BBB-

Arab National Bank Financial Saudi Arabia ARNBAB A1 STABLE A STABLE A STABLE A

Bahrain (Kingdom of Bahrain) Sovereign Bahrain BHRAIN Baa3 NEG BBB- NEG BBB NEG BBB-

Bahrain Mumtalakat Holding Co. BSC Corporate Bahrain MUMTAK NR NR BBB- NEG BBB NEG BBB-

Bahrain Telecommunications Co. BSC Corporate Bahrain BATELC NR NR BB+ STABLE BBB- NEG BB+

Bank Dhofar SAOG Financial Oman BKDBOM A3 NEG NR NR BBB+ STABLE BBB+

Bank Muscat SAOG Financial Bahrain BKMBOM A1 NEG A- STABLE A- STABLE A

Bank of Sharjah Financial Sharjah (UAE) SHARJ NR NR NR NR BBB+ STABLE BBB+

Bank Sohar SAOG Financial Oman BKSB OM NR NR NR NR BBB+ STABLE BBB+

Banque Saudi Fransi Financial Saudi Arabia BSFR Aa3 STABLE A STABLE A STABLE A+

Boubyan Bank KSC Financial Kuwait BOUBYAN KK Baa1 STABLE NR NR A+ STABLE A-


7 7


Entity Entity type

Country Bloomberg

ticker


Burgan Bank SAK Financial Kuwait BGBKKK A3 WATCH

NEG BBB+ STABLE NR NR BBB+

Commercial Bank of Dubai Financial Dubai (UAE) CBDUH Baa1 STABLE NR NR A- STABLE BBB+

Commercial Bank of Kuwait Financial Kuwait CMBKKK A3 STABLE NR NR A+ STABLE A

Commercial Bank of Qatar Financial Qatar COMQAT A1 STABLE A- NEG A+ STABLE A

DAMAC Properties Dubai Co PJSC Corporate Dubai (UAE) DAMAC NR NR BB STABLE NR NR BB

Dar Al Arkan Real Estate Development Company

Corporate Saudi Arabia DARALA Ba3 STABLE B+ NEG NR NR B+

DIFC Investment LLC Corporate Dubai (UAE) DIFCDU NR NR BBB- STABLE NR NR BBB-

Doha Bank QSC Financial Qatar DHBKQD A2 STABLE A- STABLE A+ STABLE A

Dolphin Energy Ltd Corporate Abu Dhabi (UAE) DOLNRG A1 STABLE NR NR A+ NR A+

DP World Ltd Corporate Dubai (UAE) DPWDU Baa3 STABLE NR NR BBB- STABLE BBB-

Dubai (Emirate of Dubai) Sovereign Dubai (UAE) DUGB NR NR NR NR NR NR NR


8 8


Entity Entity type

Country Bloomberg

ticker


Dubai Aviation Corp (flydubai) Corporate Dubai (UAE) FLYDU NR NR NR NR NR NR NR

Dubai Electricity & Water Authority Corporate Dubai (UAE) DEWAAE Baa2 STABLE BBB STABLE NR NR BBB

Dubai Holding Commercial Operations Group LLC

Corporate Dubai (UAE) DUBAIH NR NR NR NR NR NR NR

Dubai Investments Park Development Co LLC

Corporate Dubai (UAE) DICUH NR NR BB+ STABLE NR NR BB+

Dubai Investments PJSC Corporate Dubai (UAE) DICUH NR NR NR NR NR NR NR

Dubai Islamic Bank Financial Dubai (UAE) DIBUH Baa1 STABLE NR NR A STABLE A-

Dubai World Corporate Dubai (UAE) N.A. NR NR NR NR NR NR NR

Emaar Malls Group PJSC Corporate Dubai (UAE) EMAARM Baa2 STABLE BBB- STABLE NR NR BBB-

Emaar Properties PJSC Corporate Dubai (UAE) EMAAR Ba1 POS BBB- STABLE NR NR BB+

Emirates Airline Corporate Dubai (UAE) EMIRAT NR NR NR NR NR NR NR

Emirates Islamic Bank* Financial Dubai (UAE) EIBUH Baa1 STABLE NR NR A+ N.A. A-

Note: * Emirates Islamic Bank is not rated by any of the rating agency. The ratings reflect the ratings of the bonds issued by its subsidiary EIB Sukuk Co Ltd; Source: Bloomberg; NBAD

9 9


Entity Entity type

Country Bloomberg

ticker


Emirates NBD Financial Dubai (UAE) EBIUH Baa1 STABLE NR NR A+ STABLE A-

Emirates Telecom Corporation (ETISALAT)

Corporate Abu Dhabi (UAE) ETISLT Aa3 STABLE AA- STABLE A+ STABLE AA-

First Gulf Bank Financial Abu Dhabi (UAE) FGBUH A2 STABLE NR NR A+ STABLE A

GEMS Education KSA Corporate Dubai (UAE) GMSEDU NR NR NR NR NR NR NR

Gulf Bank KSC Financial Kuwait GFBKKK Baa1 POS BBB+ POS A+ STABLE A-

Gulf International Bank BSC Financial Bahrain GULINT A3 NEG BBB+ STABLE A STABLE A-

Gulf Investment Corp GSC Financial Kuwait GULF A2 STABLE NR NR A- STABLE A-

HSBC Bank Oman SAOG Financial Oman HBMO OM A3 NEG NR NR A+ STABLE A

Industrial Bank of Kuwait Financial Kuwait IBKUKW NR NR NR NR A+ STABLE A+

Industries Qatar QSC Corporate Qatar IQCD QD Aa3 STABLE AA- STABLE NR NR AA-

International Petroleum Investment Company

Corporate Abu Dhabi (UAE) INTPET Aa2 STABLE AA STABLE AA STABLE AA


10 10


Entity Entity type

Country Bloomberg

ticker


Investcorp Corporate Bahrain INVBNK Ba2 STABLE NR NR BB STABLE BB

Investment Corp Of Dubai Corporate Dubai (UAE) INVCOR NR NR NR NR NR NR NR

Investment Dar Company Corporate Kuwait TIDKK NR NR NR NR NR NR NR

Islamic Development Bank Financial Saudi Arabia ISDB Aaa STABLE AAA STABLE AAA STABLE AAA

Jebel Ali Free Zone Corporate Dubai (UAE) JAFZSK Ba1 STABLE NR NR BB- WATCH

POS BB

Kingdom Holding Company Corporate Saudi Arabia KINGDOM AB NR NR NR NR NR NR NR

Kuwait (State of Kuwait) Sovereign Kuwait KUWAIT Aa2 STABLE AA STABLE AA STABLE AA

Kuwait Finance House Financial Kuwait KFINKW A1 NEG A- STABLE A+ STABLE A

Kuwait International Bank Financial Kuwait KIBKK NR NR NR NR A+ STABLE A+

Kuwait Projects Co Holding KSC Corporate Kuwait KWIPKK Baa3 STABLE BBB- STABLE NR NR BBB-

Majid Al Futtaim Holding LLC Corporate Dubai (UAE) MAFUAE NR NR BBB STABLE BBB STABLE BBB


11 11


Entity Entity type

Country Bloomberg

ticker


Mashreqbank Financial Dubai (UAE) MASQUH Baa2 STABLE BBB+ STABLE A STABLE BBB+

Mubadala Development Co PJSC Corporate Abu Dhabi (UAE) MUBAUH Aa2 STABLE AA STABLE AA STABLE AA

Nakheel PJSC Corporate Dubai (UAE) NAKHL NR NR NR NR NR NR NR

National Bank of Abu Dhabi Financial Abu Dhabi (UAE) NBADUH Aa3 STABLE AA- STABLE AA- STABLE AA-

National Bank of Bahrain Financial Bahrain NBB BI Baa3 NEG NR NR BBB NEG BBB-

National Bank of Kuwait Financial Kuwait NTBKKK Aa3 STABLE A+ STABLE AA- STABLE AA-

National Bank of Oman SAOG Financial Oman NBOBOM A3 NEG NR NR BBB+ STABLE BBB+

National Bank of Ras Al-Khaimah Financial Ras Al-Khaimah

(UAE) RAKBNK Baa1 STABLE NR NR BBB+ STABLE BBB+

National Central Cooling Company Corporate Abu Dhabi (UAE) TABRED NR NR NR NR NR NR NR

National Commercial Bank Financial Saudi Arabia NCOMBK A1 STABLE A+ NEG A+ STABLE A+

Noor Bank Financial Dubai (UAE) NOORBK NR NR NR NR A- STABLE A-


12 12


Entity Entity type

Country Bloomberg

ticker


Oman (Sultanate of Oman) Sovereign Oman OMANGB A1 NEG A- STABLE NR NR A

Oman Arab Bank SAOC Financial Oman OMAB OM A2 NEG NR NR NR NR A

Qatar (State of Qatar) Sovereign Qatar QATAR Aa2 STABLE AA STABLE AA STABLE AA

Qatar Gas Transport Company (Nakilat) *

Corporate Qatar QGTS A1 STABLE AA- STABLE A+ NR A+

Qatar International Islamic Bank Financial Qatar QIIK A3 POS NR NR A+ STABLE A

Qatar Islamic Bank Financial Qatar QIBC NR NR A- STABLE A+ STABLE A

Qatar National Bank Financial Qatar QNBK Aa3 STABLE A+ STABLE AA- STABLE AA-

Qatar Petroleum Corporate Qatar QPETRO Aa2 STABLE AA STABLE NR NR AA

Qatar Real Estate Investment Company

Corporate Qatar QRESQD NR NR NR NR BBB+ STABLE BBB+

Ooredoo QSC (earlier know as Qatar Telecom)

Corporate Qatar QTELQD A2 NEG A- STABLE A+ STABLE A

Qatari Diar Real Estate Investment Company *

Corporate Qatar QATDIA Aa2 STABLE AA NR N.A. NR AA

Note: * Qatar Gas Transport Company & Qatari Diar Real Estate Investment Company are not rated by any of the rating agency. The ratings reflect the ratings of the bonds issued by their respective subsidiaries - Nakilat Inc & Qatari Diar Finance QSC; Source: Bloomberg; NBAD

13 13


Entity Entity type

Country Bloomberg

ticker


Ras Al-Khaimah (Emirate of Ras Al-Khaimah)

Sovereign Ras Al-Khaimah

(UAE) RAKS NR NR A STABLE A STABLE A

Ras Laffan Liquefied Natural Gas Co Ltd

Corporate Qatar RASGAG Aa3 STABLE NR NR NR NR AA-

Riyad Bank Financial Saudi Arabia RIBL A1 STABLE A+ NEG A+ STABLE A+

Samba Financial Group Financial Saudi Arabia SAMBA Aa3 STABLE A+ NEG A+ STABLE A+

Saudi Arabia (Kingdom of Saudi Arabia)

Sovereign Saudi Arabia SAUDIARAB Aa3 STABLE AA- NEG AA STABLE AA-

Saudi Basic Industries Corp Corporate Saudi Arabia SABIC A1 STABLE A+ NEG A+ STABLE A+

Saudi British Bank Financial Saudi Arabia SABBAB Aa3 STABLE A STABLE A STABLE A+

Saudi Electricity Company Corporate Saudi Arabia SECO A1 POS AA- NEG AA- STABLE AA-

Saudi Hollandi Bank Financial Saudi Arabia AAALAB A1 STABLE NR NR A- STABLE A

Saudi Investment Bank Financial Saudi Arabia SIBAB A2 STABLE A- STABLE A- STABLE A-

Saudi Telecom Company Corporate Saudi Arabia STC AB A1 POS A+ STABLE NR NR A+


14 14


Entity Entity type

Country Bloomberg

ticker


Sharjah (Emirate of Sharjah) Sovereign Sharjah (UAE) SHARSK A3 STABLE A STABLE NR NR A-

Sharjah Islamic Bank Financial Sharjah (UAE) SIB A3 STABLE BBB+ STABLE BBB+ STABLE BBB+

Tamweel Financial Dubai (UAE) TAMWEE Baa1 STABLE NR NR NR NR BBB+

Tourism Development & Investment Company

Corporate Abu Dhabi (UAE) TDICUH NR NR AA STABLE NR NR AA

Union National Bank Financial Abu Dhabi (UAE) UNBUH A1 STABLE NR NR A+ STABLE A+

United Arab Bank Financial Sharjah (UAE) UAB UH Baa1 STABLE NR NR NR NR BBB+

United Arab Emirates (UAE) Sovereign UAE N.A. Aa2 STABLE NR NR NR NR AA

United Gulf Bank BSC Financial Kuwait UGBANK NR NR NR NR NR NR NR

Waha Capital PJSC * Corporate Abu Dhabi (UAE) ADWA Aa2 N.A. AA N.A. AA N.A. AA

Notes: * Waha Capital PJSC is not rated by any of the rating agency. The ratings reflect the ratings of the bonds issued by its subsidiary Waha Aerospace BV; Source: Bloomberg; NBAD

15 15

As mentioned at the start of this report, we have used “composite ratings” for this analysis – i.e. the average of the

ratings assigned by three leading rating agencies Moody’s, S&P and Fitch – in order to provide a more representative view of the credit strength of each bank.

The composite rating is calculated as follows:

A score is assigned to the rating from each rating agency: AAA or equivalent being the best with a score of “1”, followed by AA+ or equivalent as “2”, AA or equivalent as “3”, AA- or equivalent as “4” and so on;

For example NBAD is rated Aa3/AA-/AA- by Moody’s/S&P/Fitch. So the scores are 4/4/4;

Hence the average of the scores is “4” which indicates a composite rating of “AA-” for NBAD;

In case the average score is not an absolute number – e.g. 4.33 (average of 4, 5, & 4 ) – the final score is derived by rounding off the average score to the nearest whole number. In this case “4”.

Appendix

16 16

Rakesh Sahu / Chavan Bhogaita Market Insights & Strategy Global Markets National Bank of Abu Dhabi Tel: +971 2 6110 127 [email protected]

Contact

gcc credit rating handbook - national bank of abu dhabi · gcc credit rating handbook 29 april,...

Documents