Moody's credit rating agency said on Friday that it had revised its outlook for 8 banks in the UAE from stable to negative, in light of the outbreak of the Corona virus emerging.
The eight banks are: Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, HSBC Middle East, Abu Dhabi Islamic Bank, Ras Al Khaimah National Bank and National Bank of Fujairah.
The agency confirmed the banks' classification, but said that the amendment of the future view reflects "the perceived potential weakness in the individual credit situation (of banks), in light of an environment rich with challenges in the UAE due to the spread of the Corona virus, low oil prices and existing pre-existing economic challenges."
Not long ago, during the past few months, the banking sector in the UAE suffered one after another, the first of which was the scandal of the collapse of the "NMC" health care company, before it was followed by another scandal after new information was revealed that "Phoenix Commodities PV Company" T "- which specializes in agricultural trade and has offices in Dubai and Singapore - is subject to liquidation, and it has facilities from Emirati banks and others with more than one billion dollars.
Experts believe that such crises will increase pressure on UAE banks in light of tight liquidity due to closures in economic activities against the backdrop of the spread of the Corona virus.