Dubai / WAM
The Etihad Credit Insurance (ECI), has been assigned Insurance Financial Strength, IFS, Rating and an Issuer Default Rating (IDR), of AA- (Very Strong) with Stable Outlook from Fitch Ratings.
The rating reflects ECI’s systemic importance to the UAE given its important role in the diversification of the country’s economy, and confirms ECI’s strong financial position and capability to protect UAE’s exporters and investors in the international marketplace.
“The federal export credit company plays a significant role in the promotion of UAE’s non-oil exports, trade, investments and strategic sectors development in line with the economic agenda of UAE’s vision 2021,” Fitch said.
Emirates NBD Capital, a 100% owned subsidiary of Emirates NBD Bank PJSC, a DFSA regulated entity based in the DIFC that offers investment banking and capital financing solutions acted as Ratings Advisor to ECI.
Underlining ECI’s significant role in the UAE economy, Massimo Falcioni, CEO of Etihad Credit Insurance, said, “We are proud to receive AA- rating, one of the strongest credit ratings for any financial institution in the UAE and the region. This will provide confidence in the capability of the company to protect the UAE-based exporters and investors while pursuing their expansion plans and export trade financing, leveraging ECI’s guarantees goodwill from the banking sector and financial lenders”
Emphasising the importance of ECI’s rating, Falcioni added, “The strong rating reinforces ECI’s position in the export credit market, which will further raise the profile of ECI and pave the path for more major international players to partner with the company.”
According to Fitch, ECI’s capitalisation is “very strong, supported by a strong capital base and currently limited exposure to risk premiums. Total insured exposure is expected to amount to AED 109 million as at end-2019 whereas total paid-in capital is AED250 million, with a further AED750 million committed by shareholders.”
Fitch added that ECI’s investments are “highly liquid” and “prudently allocated” while its reinsurance panel is “strong and well diversified mainly comprising companies rated ‘A’ and above”.