Standard & Poor’s affirms its AA- Ratings on “Dhaman”
Standard & Poor’s Ratings Services affirmed its AA- long-term issuer and financial strength credit ratings on Dhaman. The outlook is revised from stable to negative.
In its recent report, Standard & Poor’s said that its issuer credit ratings on Dhaman are based on S&P’s assessments of Dhaman’s strong business profile and strong financial profile, supported notably by its capital adequacy and excellent liquidity. S&P indicated that Dhaman’s liquidity will remain excellent, representing a significant rating strength relative to that of peers. Despite high operating risks in several member countries, Dhaman’s membership has remained stable and supportive.
It added that amid the global pandemic and potentially slow vaccination in emerging economies, 2021 remains a challenging year for Dhaman, S&P expects GDP in most of the Dhaman’s member countries, including the Gulf Cooperation Council (GCC) to recover modestly, by about 2%-3% in 2021 on average.
Mr. Abdullah Ahmad Al-Sabeeh, Director General of the Arab Investment & Export Credit Guarantee Corporation (Dhaman) , affirmed that Dhaman’s success in maintaining its high credit rating since 2008 despite its business challenges triggered off by the novel coronavirus (Covid-19) and measures taken to curb it, is due to its robust financial position, business model, capital adequacy, and excellent financial liquidity.
He explained that (Dhaman) seeks to face challenges, including the decline in investment and commercial activities, by intensifying its marketing activities and expanding its geographical reach to new markets, while continuing to support Arab export credit agencies through reinsurance agreements, as part of its mission to build insurance capacity in member states.