Emirates NBD, the UAE's largest bank, yesterday ended its relationship with Standard & Poor's (S&P), increasing tensions between the credit ratings agency and Dubai Government companies. The bank, formed in 2007 as a combination of Emirates Bank International and National Bank of Dubai, said it would not use S&P for future ratings after the merger was formally completed in November.
"Following the successful completion of the integration and the migration to the Emirates NBD core banking platform, all assets, liabilities and operations of Emirates Bank International and National Bank of Dubai have been assumed by Emirates NBD," the bank said. "As a result, credit ratings are no longer required for these subsidiary entities." The merged bank is to be rated by Fitch Ratings, Moody's Investors Service and Capital Intelligence, which the bank said "either have a presence in or long-standing coverage of the UAE".
A source close to Emirates NBD, which is majority-owned by the Government vehicle the Investment Corporation of Dubai, said S&P had less of a physical presence in Dubai. But a source familiar with the negotiations said Emirates NBD's ratings from S&P were lower than those given to the bank by the other ratings agencies. @Email:afitch@thenational.ae uharnischfeger@thenational.ae
