DUBAI, UAE, October 25, 2021 /EINPresswire.com/ –
â¢ ECI received a high score due to its systemic importance in promoting UAE non-oil exports, trade, investment and strategic sector development in line with UAE Vision 2021 economic agenda.
â¢ Fitch cites ECI’s capitalization as very strong, supported by a strong capital base with total paid-up capital of AED 250 million, with an additional AED 750 million committed by shareholders
His Excellency Mohammed bin Hadi Ahmed Abdullah Al Hussaini, Minister of State for Financial Affairs of the United Arab Emirates, Chairman of the Board of Directors of ECI, praised the efforts of Etihad Credit Insurance (ECI), the federal Export Credit with an Insurance Financial Strength Rating (IFS) and Issuer Default Rating (IDR) of AA- (very strong) with a stable outlook of Fitch Ratings, for the third consecutive year .
Fitch considers the systemic importance of the ECI to the UAE as the main driver of the IFS rating. The ECI was founded to insure non-oil export companies based in the United Arab Emirates against non-payment. The company also protects investments outside the UAE against political risks and supports corporate bidding for international bidding. ECI plays an important role in promoting non-oil exports, trade, investment and strategic sector development of UAE in accordance with UAE economic agenda.
HE Mohammed bin Hadi Ahmed Abdullah Al Hussaini said: âI take this opportunity to congratulate His Excellency Dr Thani Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and Vice President of ECI, the Council of administration and the entire ECI management team for receiving an AA- rating with stable outlook from Fitch Ratings for the third consecutive year. A very good credit rating that a financial institution can receive, not only in UAE but across the region. This high ranking reflects the Federal Export Credit Corporation’s unwavering commitment to helping UAE companies gain a competitive advantage in the international marketplace by providing them protection and trade confidence, thereby strengthening the non-oil economy. of the United Arab Emirates in accordance with the vision and principles set forth in our Nationally Thought Leadership for the Next 10 Decades. This tremendous achievement is a testament to the Federal Export Credit Corporation’s commitment to continuously improve and innovate to help further position the country as a global trade and business hub.
Although only in its fourth year of operation, the UAE’s export credit agency has already made strong contributions to the country’s jobs and economy. In September 2021, ECI took another step forward by issuing AED 3.4 billion in revolving credit guarantees, which is three times higher than in the same period of the previous year, which is equivalent to the 10 billion AED supported by UAE non-oil trade (50 percent including exports) targeted for 2021.
According to the rating agency, ownership of ECI by UAE authorities, coupled with the extremely high likelihood of additional support if needed, supports the ratings. ECI is owned by the Federal Government of the United Arab Emirates and the governments of five of the seven emirates, including the governments of Abu Dhabi and Dubai.
Commenting on this accomplishment, ECI CEO Massimo Falcioni said: This has earned him this high rating for the third year in a row. It reiterates the important role of the ECI in diversifying the country’s economy and confirms the strong financial position of the federal agency and its ability to protect UAE exporters and investors in the international market. Fitch highlighted the important role of the ECI in promoting non-oil exports, trade, investment and development of strategic sectors of the UAE, in line with the UAE’s economic agenda.
According to Fitch, ECI’s capitalization is very strong, supported by a strong capital base with total paid-up capital of AED 250 million, with an additional AED 750 million committed by shareholders. ECI uses conventional, facultative and quota agreements placed through brokers to cede 65% of its credit, surety and political risk business to âAâ and âAAâ rated reinsurance companies with an limit of AED 100 million per reinsurer.
In addition, ECI achieved an ESG relevance score of â4â for the governance structure due to its ownership and close ties to the sovereign, reflecting the high ESG relevance scores of the UAE sovereign rating.
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