S&P Global Ratings on May 27 raised Sharjah Islamic Bank PJSC's long-term issuer credit rating to A- from BBB+ with a stable outlook.
The upgrade reflects the rating agency's view of Sharjah Islamic Bank's high systemic importance in the United Arab Emirates, given that it is the fifth-largest Islamic bank in the country, as well as the likelihood that the lender, which has a strong relationship with the Sharjah government, will receive support from federal authorities if needed. The upgrade also takes into account the bank's capitalization, the resilient asset quality of its loan portfolio and its low levels of cost of risk.
The stable outlook reflects S&P Global Ratings' expectation that the bank's business financial profiles will remain broadly unchanged in the coming 24 months.
At the same time, the agency affirmed the United Arab Emirates-based bank's A-2 short-term issuer credit rating.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.