Etihad Credit Insurance (ECI), the UAE's federal export credit company, announced that it has obtained sustained AA- Fitch Ratings for six consecutive years.
Fitch Ratings has reconfirmed ECI’s Insurer Financial Strength (IFS) rating and Long-Term Issuer Default Rating (IDR) at ‘AA-’ (very strong) with Stable Outlooks.
This prestigious recognition, from 2019 to date, highlights ECI’s unwavering dedication to support UAE’s economic diversification and boosting the international competitiveness of UAE-based businesses.
Abdullah bin Touq Al Marri, Minister of Economy and Chairman of the Board of Directors of Etihad Credit Insurance, said,
"The positive rating from Fitch reaffirms the UAE's efforts in diversifying the national economy and enhancing its competitiveness regionally and globally. It also reflects the confidence of international institutions, global rating agencies, and business communities in the UAE as a leading economic destination."
He added,
“This rating will strengthen the creditworthiness of Etihad Credit Insurance, the strength of its financial position, and its role in enhancing the reputation and competitiveness of national exports in foreign markets. This success confirms our firm commitment to increasing economic diversification in the country, supporting and encouraging exporters to deal with foreign markets confidently and securely, thereby enhancing the achievement of the economic targets of 'We the UAE 2031' vision. This vision aims to enhance the country's position as a global partner, an attractive and influential economic hub, and to increase the non-oil national exports of the country to AED 800 billion by the next decade.”
ECI's strategic initiatives have significantly contributed to the promotion of UAE non-oil exports, evidencing a robust portfolio growth with a gross exposure of AED 9.5 billion as of the end of 2023 and covering 1.9 percent out of AED 366 billion in 2022.
Supporting the AA- rating by Fitch, ECI has a strong capitalisation with AED 250 million in paid-in capital, an extra AED 750 million contributed by its shareholders for growth objectives, and it doesn't have any debt.
ECI's investments are characterised by high liquidity and prudent allocation to short-term fixed deposits in UAE-based banks of high credit quality.
Etihad Credit Insurance remains committed to the UAE's ambitious agenda to diversify its economy and boost its stature on the global trade map. Through its innovative suite of services, ECI is dedicated to empowering UAE businesses to navigate the complexities of international trade, secure competitive credit terms, and leverage strategic partnerships worldwide.
Raja Al Mazrouei, CEO of ECI, commented,
“The 'AA-' rating, Fitch Ratings, for the sixth consecutive year, is more than just an honour; it reflects ECI's stable foundation, strategic objectives, and the significant role we play in supporting the UAE's strategy for economic progress. This grade underscores our commitment to excellence as we continue to develop and deliver robust trade financing solutions that enable UAE businesses to succeed on a global scale."
News Source: Emirates News Agency
