Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.
The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."
Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.
Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.
However, its exposure to these uncertainties is counterbalanced by "strong corporate governance and risk management practices, reflected in resilience to these risks over the past decade, and a trend towards greater diversification of its portfolio".
This year, Apicorp is looking at supporting clients in the energy sector to tide over the difficulties of the Covid-19 pandemic, with disbursements of up to $2 billion.
Last year, it rolled out a $500m countercyclical package to support sustainable projects in the conventional and renewables space.
Moody's noted in its assessment that the bank's strong profitability supported its capital position.
The Dammam-based lender reported a 3 per cent rise in net income for 2020.
Net income rose to $115 million from the year-earlier period. Apicorp's performance was supported by significant capital gains from its treasury and capital markets portfolio. The portfolio gained 488 per cent after netting $46m in capital gains last year.
Return on assets and equity averaged 1.9 per cent and 5.8 per cent respectively, during 2013-20, Moody's noted.
"Moody's expects this strong financial performance to continue to support the corporation's capital buffers in the next few years," the agency said.
"This will allow the corporation to maintain stable leverage, albeit at relatively high levels compared to similarly-rated Multilateral Development Banks (MDBs) while growing its development assets," it added.
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
yallacompare profile
Date of launch: 2014
Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer
Based: Media City, Dubai
Sector: Financial services
Size: 120 employees
Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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