Limassol, May 03, 2013 -- Moody's Investors Service has assigned a provisional senior unsecured
rating of (P)Baa1 to the USD2 billion Euro Medium-Term Note (EMTN)
programme of Commercial Bank of Dubai PSC (CBD). The outlook on
the rating is stable.
RATINGS RATIONALE
The (P)Baa1 foreign currency rating assigned to senior unsecured class
of notes under CBD's multiple seniority EMTN programme is aligned
with the bank's deposit ratings. The alignment of the ratings reflects
two primary considerations (1) the senior unsecured debt instruments issued
under the EMTN programme will be direct, unconditional, unsecured,
and unsubordinated obligations of CBD; and (2) the instruments will
rank pari passu with all other direct, unconditional, unsecured
and unsubordinated present and future obligations of CBD.
Under the programme, CBD may issue notes up to a maximum aggregate
amount of USD2 billion.
As Moody's issues provisional ratings in advance of the final issuance
under the program, these ratings only represent Moody's preliminary
credit opinion. Moody's will endeavour to assign definitive ratings
to actual issuances from the EMTN program. A definitive rating
may differ from a provisional rating if the terms and conditions of the
issuance are materially different from those of the programme reviewed.
Moody's will disseminate the future assignment of any definitive ratings
through its Client Service Desk.
What Could Change the Rating Up/Down
The provisional senior unsecured debt rating assigned to the EMTN programme
is aligned with CBD's Baa1 deposit ratings and will move in tandem
with CBD's deposit ratings.
Although the outlook on CBD's deposit ratings is stable, upward
pressure could develop as a result of (1) significant expansion and diversification
of franchise, (2) sustained improvements in asset quality and coverage
metrics and (3) a material reduction in credit concentration.
Downward pressure on CBD's deposit ratings could develop with (1)
further weakening of asset quality; or (2) deterioration of capitalisation
levels, or (3) significant weakening of its franchise.
The principal methodology used in this rating was Moody's Consolidated
Global Bank Rating Methodology published in June 2012. Please see
the Credit Policy page on www.moodys.com for a copy of this
methodology.
CBD is headquartered in Dubai, UAE. As of 31 December 2012,
CBD reported assets of AED 39.4 billion ($10.7 billion
approximately).
The local market analyst for this rating is Nitish Bhojnagarwala,
+971.4.237.9563.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Nondas Nicolaides
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Kanika Business Centre
319 28th October Avenue
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Yves J Lemay
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Cyprus Ltd.
Kanika Business Centre
319 28th October Avenue
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's assigns (P)Baa1 rating to Commercial Bank of Dubai's EMTN program