Dubai’s Shuaa Capital rating downgraded to Ba3

29 Dec 2011

(MENAFN) Dubai-based Shuaa Capital lost its Ba2 rating at credit ratings agency Moody’s, along with a negative outlook, Arabian Business reported.

The investment bank’s rating was cut by one notch to Ba3 from Ba2 and placed on review for further downgrade, the ratings agency said.

The downgrade comes despite strong capital and liquidity positions, as well as the appointment of new management to help moving Shuaa’s status to profitability.

Shuaa suffered from losses for four consecutive years with the reported net loss for the nine month period ending September 2011 at USD5 million.

Moody’s attributed Shuaa’s losses to reduced revenues from all business lines, continued investment write downs and a very high cost base.

As of December 31 2010, Shuaa reported total consolidated assets of USD523 million under IFRS.

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