News Middle East09 Dec 2019

UAE:Federal export credit firm receives AA- rating

| 09 Dec 2019

Etihad Credit Insurance (ECI), the UAE federal export credit company, has been assigned an 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 was founded to protect UAE-based companies associated with non-oil export activities against non-payment, and to protect investments outside of UAE against political risks and support corporate bidding for international tenders. The 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.

According to the international credit rating agency, 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 AED109m ($30m) at end-2019 whereas total paid-in capital is AED250m, with a further AED750m 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”.

Underlining ECI’s significant role in the UAE economy, Mr Massimo Falcioni, the company's CEO, said, “We are proud to receive the 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.”


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