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Abu Dhabi, UAE: Dunia Finance (dunia), which was founded in 2008, is pleased to announce that its Long-Term Issuer Default Rating (IDR) has been affirmed at 'BB' by international ratings agency, Fitch Ratings. dunia's short-term IDR was affirmed at 'B', while its long-term IDR outlook was confirmed as stable.
dunia's credit rating was upgraded in 2015 from 'BB-' to 'BB'.
As part of their announcement on 28 July 2016, Fitch said dunia's current rating reflects the company's exposure to credit risk, inherent within unsecured lending and amplified by the rapid growth of dunia's loan book. Fitch added that its latest review takes into account dunia's prudent, albeit increasing leverage, and its wide net interest margin.
Fitch also stated that dunia's ratings do not factor in any state or institution support. Fitch also stated that as per Central Bank of the UAE regulations, dunia is required to maintain a minimum capital ratio of 15%, while it's actual capital adequacy ratio as of December 31st, 2015 stood at a much higher number of 33.11%. The company's debt to tangible equity ratio remains low compared to other financial institutions, which is supportive of dunia's IDRs, it added.
A copy of Fitch's release on dunia's rating affirmation is available on Fitch Ratings' website.
Commenting, Rajeev Kakar, CEO and Managing Director of dunia, said: "We welcome Fitch affirming our long-term issuer credit rating, following an upgrade last year. This strong rating is a testament to the priority we place on customers, and to serving them uniquely with a customer centric approach. We are committed to investing in building a trusted brand, while investing in the best talent, products, technology and services at dunia. Our approach of ensuring a predictable and stable risk adjusted return helps us maintain a healthy balance sheet and risk profile reflected in our low levels of leverage and high levels of capital adequacy, while delivering strong returns to our shareholders. The success of our approach is evident in this rating, and we are grateful for the opportunity to leverage our achievements to support the local community.."
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ABOUT DUNIA FINANCE
dunia is an Abu Dhabi headquartered finance company operating in the UAE. It is a strategic investment and alliance created by a group of leading players namely:
· Mubadala - a wholly owned investment vehicle of the Government of the Emirate of Abu Dhabi
· Fullerton Financial Holdings - a wholly owned subsidiary of Temasek Holdings in Singapore
· Waha Capital - a holding company engaged in owning, selling, leasing and investing in various types of fixed and movable assets worldwide
· A.A. Al Moosa Enterprises - one of the leading business groups in the UAE
dunia aims to focus nationally on the key Mass Affluent and Mass Market segments in the Consumer Financial services side, and on the SME and Small business customers on the Business Finance side. Through a nationwide presence in the UAE, dunia provides a full-function product range, including a secured and unsecured loans, credit cards, financial planning services, deposits, financial guarantees and payroll processing for non-individual customers.
dunia is unique in its use of a customer-centric approach that aims to deliver a differentiated, yet relevant and unique value proposition that caters to the holistic product, convenience, experience, and service expectations of people in the UAE. All this is delivered sustainably and predictably to customers through processes and a proposition that is supported by investment in state-of-the-art technology and capabilities; and through partnerships with service providers who excel in their individual areas of expertise. dunia is led by a senior management team comprising of talented and seasoned business leaders with significant global experience.
dunia means 'the world' in Arabic and in several other languages spoken in the UAE. dunia aims to offer its customers a world of opportunities.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mariam Elsamny, Head of Corporate Affairs, Dunia Finance
Email: mariamelsamny@dunia.ae
Tel: +971 528559555
MEDIA CONTACT
Nora Layous, Bell Pottinger
Email: nlayous@bellpottinger.com
Tel: +971 55 559 7400
© Press Release 2016
