Leading rating agency Moody's Investors has revised financial ratings of Abu Dhabi Commercial Bank PJSC (ADCB) by declining it to A1from Aa3 under the long-term deposit ratings. ADCB's bank financial strength rating (BFSR) has been revised to D+ from C-. Its subordinate debt rating would be A2 from A1 earlier.

Moody's believes that ADCB's standalone financial strength has weakened on accounts of high loan delinquencies and impairments of investments. However, its parent Abu Dhabi Investment Council can help to support its further growth.

The international agency said that huge projects of Abu Dhabi's neighbor Dubai have substantially raised the debt of UAE federation. The agency projected UAE's external debt to touch 60.9 percent of GDP or equivalent to $138.5 billion this year compared to $43.1 billion in 2005 and $13.6 billion in 2001.

Meanwhile the Abu Dhabi government has said that its financial assets are still significantly higher than the gross domestic product (GDP) of the country. Tristan Cooper, the Head Analyst for sovereign risk in the Middle East has also confirmed that foreign assets of Abu Dhabi Investment Authority's (ADIA) are alone significantly high than UAE's external liabilities.