GCC Credit Ratings Handbook. 19 May, 2016

Transcription

1 GCC Credit s Handbook 19 May,

2 Disclaimer 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. 2 2

3 Foreword 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 Managing Director & Head of Market Insights & Strategy Global Markets NBAD [email protected]

4 NCB Al Rajhi ADIB QIB CBQ Al Ahli Bank of Kuwait Gulf Bank SABB Riyad Bank Arab National Bank ENBD Noor Gulf Inv Corp Saudi Inv Bank Gulf Intl Bank Tamweel Bank of Sharjah RAKBANK Bank Muscat NBB BBK NBO Bank Sohar ABC Composite ADCB UNB NBAD BSF Samba FGB IsDB QNB NBK Al-Hilal Ind Bank of Kuwait Kuwait Intl Bank Doha Bank QIIB Al Khalij KFH CBK Intnl Bank of Qatar Saudi Hollandi HSBC Bank Oman DIB Boubyan bank Emirates Islamic Bank Burgan Bank Com Bank of Dubai Mashreq Sharjah Islamic Bank NBF (Fujairah) Oman Arab Bank UAB Ahli United Bank Bank Dhofar Ahli Bank United Arab Emirates (UAE) Emirate of Abu Dhabi Kingdom of Saudi Arabia Emirate of Ras Al-Khaimah Emirate of Sharjah Composite Kingdom of Bahrain Sultanate of Oman Emirate of Dubai* Qatar Kuwait Mubadala IPIC TDIC Waha Qatari Diar Qatar Petroleum Etisalat RASGAS Industries Qatar Dolphin Energy QGTS (Nakilat) SECO SABIC Etihad Ooredoo (Qtel) Saudi Telecom OMGRID Aldar DIFC Investment Kuwait Projects Co Mumtalakat Emaar Prop Damac Batelco DEWA Dar Al Arkan Composite MAF DP World Taqa Emaar Malls Grp JAFZ Dubai Inv Park (DIP) Ezdan Holding Investcorp GCC entities Credit quality (based on composite credit ratings) AA AA AA A+ 11A 10 A- BBB+ 9 BBB 8 BBB- 7 BB+ 6 BB 5 GCC Sovereigns AA AA AA A+ 11A 10A- BBB+ 9 BBB 8 BBB- 7 BB+ 6 BB 5 BB- 4 B+ 3 2B- GCC Corporates GCC Financials 17 AAA 16 AA+ 15 AA 14 AA A+ 11A 10 A- BBB+ 9 BBB 8 BBB- 7 BB+ 6 BB 5 BB- 4 Note: The ratings mentioned here are composite credit rating for each issuer. Please see appendix for the methodology of calculating composite credit rating; * Dubai is not rated by any rating agency and we have assigned a proxy rating o BBB based on its fundamentals with a relative comparison to Oman (BBB), Bahrain (BBB-) & DEWA (BBB); Source: ; NBAD 4 4

5 Outlook Outlook Outlook Abu Dhabi (Emirate of Abu Dhabi) Sovereign Abu Dhabi (UAE) ADGB Aa2 Negative AA Stable AA Stable AA Abu Dhabi Commercial Bank Financial Abu Dhabi (UAE) ADCB A1 Negative A Stable A+ Stable A+ Abu Dhabi Islamic Bank Financial Abu Dhabi (UAE) ADIBUH A2 Negative 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 PQSC Financial Qatar ALKHAL A3 Stable NR NR A+ Stable A Al Rajhi Bank Financial Saudi Arabia RJHIAB A1 Stable BBB+ Stable A Negative A Aldar Properties PJSC Corporate Abu Dhabi (UAE) ALDAR Baa3 Stable BBB- Positive NR NR BBB- Al-Hilal Bank Financial Abu Dhabi (UAE) ALHILA A1 Negative NR NR A+ Stable A+ Arab Banking Corp Financial Bahrain ABCORP Ba1 Negative BBB- Stable BBB- Stable BBB- Arab National Bank Financial Saudi Arabia ARNBAB A2 Stable BBB+ Stable A- Negative A- Source: ; NBAD 5 5

6 Outlook Outlook Outlook Bahrain (Kingdom of Bahrain) Sovereign Bahrain BHRAIN Ba2 Negative BB Stable BBB- Negative BB+ Bahrain Mumtalakat Holding Co. BSC Corporate Bahrain MUMTAK NR NR BB Stable BBB- Negative BB+ Bahrain Telecommunications Co. BSC Corporate Bahrain BATELC NR NR BB Stable BBB- Negative BB+ Bank Dhofar SAOG Financial Oman BKDBOM Baa2 Negative NR NR BBB Stable BBB Bank Muscat SAOG Financial Oman BKMBOM Baa1 Stable BBB- Stable BBB+ Stable BBB Bank of Sharjah Financial Sharjah (UAE) BOSUH NR NR NR NR BBB+ Stable BBB+ Bank Sohar SAOG Financial Oman BKSBOM NR NR NR NR BBB Stable BBB Banque Saudi Fransi Financial Saudi Arabia BSFR A1 Stable BBB+ Stable A- Negative A- Boubyan Bank KSC Financial Kuwait BUBYAN Baa1 Stable NR NR A+ Stable A- Burgan Bank SAK Financial Kuwait BGBKKK A3 Stable BBB+ Stable A+ Stable A- 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 A2 Stable BBB+ Negative A+ Stable A Source: ; NBAD 6 6

7 Outlook Outlook Outlook 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 B1 Negative NR NR 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- Negative 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- Positive BBB- Dubai (Emirate of Dubai) Sovereign Dubai (UAE) DUGB NR NR NR NR NR NR NR 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 Positive NR NR BBB Dubai Holding Commercial Operations Group LLC Dubai Investments Park Development Co LLC Corporate Dubai (UAE) DUBAIH NR NR NR NR NR NR NR 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- Source: ; NBAD 7 7

8 Outlook Outlook Outlook 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 Positive 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 Positive NR NR A+ Stable A- Emirates NBD Financial Dubai (UAE) EBIUH Baa1 Positive NR NR A+ Stable A- Emirates Telecom Corporation (Etisalat) Corporate Abu Dhabi (UAE) ETISLT Aa3 Negative AA- Stable A+ Stable AA- Etihad Airways PJSC Corporate Abu Dhabi (UAE) ETIAIR NR NR NR NR A Stable A Ezdan Holding Group QSC Corporate Qatar ERESQD Ba1 Stable BBB- Stable NR NR BB+ First Gulf Bank Financial Abu Dhabi (UAE) FGBUH A2 Stable A Stable A+ Stable A GEMS Education KSA Corporate Dubai (UAE) GMSEDU NR NR NR NR NR NR NR Gulf Bank KSC Financial Kuwait GFBKKK A3 Stable A- Stable A+ Stable A Gulf International Bank BSC Financial Bahrain GULINT Baa1 Negative NR NR A- Negative BBB+ Note: * Emirates Islamic Bank is only rated by Fitch; The Moody s rating reflect the ratings of the bonds issued by its subsidiary EIB Sukuk Co Ltd; Source: ; NBAD 8 8

9 Outlook Outlook Outlook Gulf Investment Corp GSC Financial Kuwait GULF A2 Stable NR NR A- Stable A- HSBC Bank Oman SAOG Financial Oman HBMO OM Baa1 Stable NR NR A+ Negative A- Industrial Bank of Kuwait Financial Kuwait IBKUKW NR NR NR NR A+ Stable A+ Industries Qatar QSC Corporate Qatar IQCD QD Aa3 Negative AA- Stable NR NR AA- International Bank of Qatar QSC Financial Qatar INTBOQ A2 Stable NR NR A+ Stable A International Petroleum Investment Company (IPIC) Corporate Abu Dhabi (UAE) INTPET Aa2 Negative AA Stable AA Stable AA Investcorp Bank BSC Corporate Bahrain INVBNK Ba2 Negative 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 Baa3 Stable NR NR BBB- Positive BBB- Kingdom Holding Company Corporate Saudi Arabia KINGDOM AB NR NR NR NR NR NR NR Kuwait (State of Kuwait) Sovereign Kuwait KUWAIT Aa2 Negative AA Stable AA Stable AA Source: ; NBAD 9 9

10 Outlook Outlook Outlook Kuwait Finance House Financial Kuwait KFINKW A1 Negative A- Negative 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 Mashreqbank Financial Dubai (UAE) MASQUH Baa2 Stable BBB+ Stable A Stable BBB+ Mubadala Development Co PJSC Corporate Abu Dhabi (UAE) MUBAUH Aa2 Negative 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 Negative AA- Stable AA- Stable AA- National Bank of Bahrain Financial Bahrain NBB BI Ba3 Negative NR NR BBB- Negative BB National Bank of Fujairah Financial Fujairah (UAE) FUJAIR Baa1 Stable BBB+ Stable NR NR BBB+ National Bank of Kuwait Financial Kuwait NTBKKK Aa3 Negative A+ Stable AA- Stable AA- National Bank of Oman SAOG Financial Oman NBOBOM Baa2 Stable NR NR BBB Stable BBB National Bank of Ras Al-Khaimah Financial Ras Al-Khaimah (UAE) RAKBNK Baa1 Stable NR NR BBB+ Stable BBB+ Source: ; NBAD 10 10

11 Outlook Outlook Outlook 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 BBB+ Stable A Negative A Noor Bank Financial Dubai (UAE) NOORBK NR NR NR NR A- Stable A- Oman (Sultanate of Oman) Sovereign Oman OMANGB Baa1 Stable BBB- Stable NR NR BBB Oman Arab Bank SAOC Financial Oman OMAB OM Baa2 Stable NR NR NR NR BBB Oman Electricity Transmission Co SAOC Ooredoo QSC (earlier know as Qatar Telecom) Corporate Oman OMGRID Baa1 Stable BBB- Stable NR NR BBB Corporate Qatar QTELQD A2 Negative A- Stable A+ Stable A Qatar (State of Qatar) Sovereign Qatar QATAR Aa2 Negative AA Stable AA Stable AA Qatar Gas Transport Company (Nakilat) * Corporate Qatar QGTS A1 Negative AA- Stable A+ NR A+ Qatar International Islamic Bank Financial Qatar QIIK A2 Stable NR NR A+ Stable A Qatar Islamic Bank Financial Qatar QIBC NR NR A- Negative A+ Stable A Qatar National Bank Financial Qatar QNBK Aa3 Negative A+ Stable AA- Stable AA- Qatar Petroleum Corporate Qatar QPETRO Aa2 Negative AA Stable NR NR AA Notes: * Qatar Gas Transport Co is not rated by any of the rating agency. The ratings reflect the ratings of the bonds issued by its subsidiary Nakilat Inc; Source: ; NBAD 11 11

12 Qatar Real Estate Investment Company Qatari Diar Real Estate Investment Company * Ras Al-Khaimah (Emirate of Ras Al- Khaimah) Ras Laffan Liquefied Natural Gas Co Ltd Outlook Outlook Outlook Corporate Qatar QRESQD NR NR NR NR NR NR NR Corporate Qatar QATDIA Aa2 Negative NR NR NR NR AA Sovereign Ras Al-Khaimah (UAE) RAKS NR NR A Stable A Stable A Corporate Qatar RASGAG Aa3 Stable NR NR NR NR AA- Riyad Bank Financial Saudi Arabia RIBL A2 Stable BBB+ Stable A Negative A- Samba Financial Group Financial Saudi Arabia SAMBA A1 Stable BBB+ Stable A Negative A Saudi Arabia (Kingdom of Saudi Arabia) Sovereign Saudi Arabia SAUDI A1 Stable A- Stable AA- Negative A+ Saudi Basic Industries Corp Corporate Saudi Arabia SABIC A1 Stable A- Stable A+ Stable A Saudi British Bank Financial Saudi Arabia SABBAB A1 Stable BBB+ Stable A- Negative A- Saudi Electricity Company Corporate Saudi Arabia SECO A2 Stable A- Stable A+ Negative A Saudi Hollandi Bank Financial Saudi Arabia AAALAB A3 Stable NR NR A- Negative A- Saudi Investment Bank Financial Saudi Arabia SIBAB A3 Stable BBB Stable A- Negative BBB+ Saudi Telecom Company Corporate Saudi Arabia STCAB A2 Stable A- Stable NR NR A- Notes: * Qatari Diar Real Estate Investment Company is not rated by any of the rating agency. The ratings reflect the ratings of the bonds issued by its subsidiary Qatari Diar Finance QSC; Source: ; NBAD 12 12

13 Outlook Outlook Outlook 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 Negative NR NR A+ Stable A+ United Arab Bank Financial Sharjah (UAE) UABUH Baa2 Stable NR NR NR NR BBB United Arab Emirates (UAE) Sovereign UAE N.A. Aa2 Negative NR NR NR NR AA United Gulf Bank BSC Financial Bahrain UGBANK NR NR NR NR NR NR NR Waha Capital PJSC * Corporate Abu Dhabi (UAE) ADWA Aa2 NR AA NR AA NR 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: ; NBAD 13 13

14 Appendix 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 (average of 4, 5, & 4 ) the final score is derived by rounding off the average score to the nearest whole number. In this case

15 Contact Rakesh Sahu / Chavan Bhogaita Market Insights & Strategy Global Markets National Bank of Abu Dhabi Tel: [email protected] 15 15