x Abu Dhabi, UAEFriday 28 July 2017

ADCB ends Moody's contract

Abu Dhabi Commercial Bank has terminated its contract with Moody's Investors Service only months after settling a lawsuit with the credit ratings agency.

Abu Dhabi Commercial Bank has terminated its contract with Moody's Investors Service only months after settling a lawsuit with the credit ratings agency.

The capital's second-biggest lender, which lost millions on bad bets before the financial crisis that were given investment grade ratings by Moody's and other ratings agencies, cut ties earlier this week.

"On 15 July 2013 Abu Dhabi Commercial Bank… terminated its agreement with Moody's Investors Service to provide ratings services to ADCB, ADCB Finance (Cayman) Limited, ADCB Islamic Finance (Cayman) Limited and any other subsidiaries of ADCB," the bank said in a statement.

"ADCB and its subsidiaries will continue to be rated by Standard & Poor's Ratings Services, Fitch Ratings Ltd and RAM Rating Services Berhad."

ADCB's shares fell 0.9 per cent to Dh5.30 per share after the statement was released.

In April, a group of plaintiffs led by ADCB settled with Moody's and Standard & Poor's over a lawsuit regarding ratings on soured credit derivatives that the bank alleged were inflated. The bank did not state whether the termination was linked to the lawsuit.

Moody's did not respond to requests for comment. Disagreements between ratings agencies and the companies they cover are a frequent occurrence in the UAE.

 

ghunter@thenational.ae