Standard & Poor's Ratings Services affirms its AA- Ratings on The Arab Investment and Export Credit Guarantee Corporation “Dhaman” - Dhaman

Standard & Poor’s Ratings Services affirms its AA- Ratings on The Arab Investment and Export Credit Guarantee Corporation “Dhaman”

On March 31, 2021, Standard & Poor’s Ratings Services affirmed its AA- long-term issuer and financial strength credit ratings on Dhaman. The outlook is revised from stable to negative.

Standard & Poor’s issuer credit ratings on Dhaman are based on S&P’s assessments of Dhaman’s strong business profile and strong financial profile, supported notably by its capital adequacy and excellent liquidity. S&P indicated that Dhaman’s liquidity will remain excellent, representing a significant rating strength relative to that of peers. Despite high operating risks in several member countries, Dhaman’s membership has remained stable and supportive.

Amid the global pandemic and potentially slow vaccination in emerging economies, 2021 remains a challenging year for Dhaman, S&P expects GDP in most of the Dhaman’s member countries, including the Gulf Cooperation Council (GCC) to recover modestly, by about 2%-3% in 2021 on average.

To accomplish its mission, Dhaman will revive its business operations, increase its marketing efforts and expand its geographical reach to new markets. Given its mandate to support capacity building in Member Countries, Dhaman will continue supporting Member Countries’ Export Credit Agencies through multiple reinsurance agreements.