Fitch Ratings has assigned Abu Dhabi Commercial Bank (ADCB) a Long-term foreign currency Issuer Default Rating (IDR) of 'A+' with a Stable Outlook, Short-term IDR of 'F1', Individual Rating of 'C/D', and Support Rating Floor of 'A+'. Fitch has also affirmed the Support Rating of '1'.
ADCB's Long- and Short-term IDRs and Support Rating reflect the extremely high probability of support from the UAE authorities if needed. Fitch's opinion of likely support is based on the Abu Dhabi government's 58.1% stake (through the Abu Dhabi Investment Council) in the bank, its systemic importance and the strong history of support from the UAE authorities for local banks.
The Individual Rating reflects ADCB's strong commercial franchise and improving core earnings. The rating is constrained by the bank's weak asset quality, its vulnerability to high concentration risks in loans and deposits as well as its tight capital and liquidity position.
No comments:
Post a Comment