Apr 2017

Standard & Poor’s reaffirmed its “AA” rating for Dhaman with Stable Outlook


Standard & Poor’s Rating Services, one of the world’s leading rating agencies, under its revised criteria for multilateral lending institutions (MLIs) and other Supra-nationals, reaffirmed its “AA” rating on Dhaman and continued Stable Outlook, reflecting its very strong business profile and strong financial profile.

The Arab Investment and Export Credit Guarantee Corporation (Dhaman) is an autonomous Arab multilateral organization, established and based in Kuwait since 1974; it encompasses in its membership all Arab states and a number of Arab international organizations. It serves as an export credit agency for the Arab region, supporting FDI’s into and trade with Arab states.

Dhaman’s Director-General, Mr. Fahad Al-Ibrahim announced “Dhaman maintained its high ratings at “AA” with Stable Outlook for the tenth consecutive year. We continue to witness material growth in our investment guarantee and export credit insurance business volumes backed by solid financial position, despite the prevailing political uncertainties and economic challenges in many countries within the Arab World, being the primary geographical focus of Dhaman’s operations.”

The S&P stated in its press release dated 29th March 2017 that their ratings on Dhaman continue to be based on their view of the agency’s very strong business profile and strong financial profile. They added “Our assessment of Dhaman’s standalone credit profile (SACP) is ‘aa’. We incorporate no uplift from extraordinary shareholder support into our ‘AA’ ratings on Dhaman, since the capital base is currently fully subscribed and in the process of being paid-up”.
“The stable outlook reflects our expectation that Dhaman will meet its growth targets while maintaining strong financials as it meets its primary goal of helping service economic growth across the Arab region”.

Read  full S&P report 2017