S&P affirms ratings on top #UAE banks, revises outlook to stable | ZAWYA MENA Edition

S&P affirms ratings on top UAE banks, revises outlook to stable | ZAWYA MENA Edition

S&P Global Ratings on Tuesday affirmed its ratings on First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Sharjah Islamic Bank (SIB), and Mashreqbank (Mashreq). The outlook for all the banks were revised to stable from negative, the ratings agency said in a note.

S&P lowered the long-term issuer credit ratings on National Bank of Fujairah (NBF) to 'BBB' from 'BBB+' and revised the outlook on the bank to stable from negative.

The sharp economic contraction in 2020--and prospects of a protracted recovery in 2021 and beyond--will have varying effects on rated UAE banks, it said in a note.

“We expect the residential real estate sector will remain under pressure for at least another year or two because of continuous oversupply, while demand-driven weaknesses will hamper the tourism, hospitality, and aviation sectors, as well as some trading sectors. We therefore expect UAE banks' asset-quality indicators will continue to deteriorate in the next 12-24 months, as regulatory forbearance measures are gradually lifted, and that credit losses will likely remain elevated.”