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Wednesday, 22 February 2017

Fitch Affirms 5 UAE Banks; Maintains RWP on FGB | Reuters

Fitch Affirms 5 UAE Banks; Maintains RWP on FGB | Reuters:

"Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of five UAE banks with Stable Outlook and maintained Rating Watch Positive (RWP) on First Gulf Bank's (FGB) IDRs. The agency also downgraded the Viability Rating of Union National Bank (UNB) to 'bbb-' from 'bbb'. A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS IDRs, SUPPORT RATINGS AND SUPPORT RATING FLOORS The affirmation of National Bank of Abu Dhabi's (NBAD), Emirates NBD's (ENBD), UNB's and Abu Dhabi Commercial Bank's (ADCB) Long-Term IDRs, Support Ratings and Support Rating Floors (SRF) reflects the extremely high probability of support from the UAE authorities, and governments of Abu Dhabi (AA/Stable/F1+) and Dubai, if required. FGB's Long-Term IDRs of 'A+' also reflect the extremely high probability of support from the state. Fitch's view of support reflects the sovereign's strong capacity to support the banking system, sustained by UAE's sovereign wealth funds and on-going revenues from hydrocarbon production, despite lower oil prices, and the moderate size of the UAE banking sector in relation to the country's GDP. Fitch also expects high propensity from the authorities to support the banking sector, which has been demonstrated by the UAE authorities' long track record of supporting domestic banks, as well as close ties and part-government ownership links to a number of banks."



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