Fitch affirms Abu Dhabi Commercial Bank at A+ with stable outlook | ZAWYA MENA Edition
Global rating agency Fitch has affirmed Abu Dhabi Commercial Bank's (ADCB) long-term Issuer Default Rating (IDR) at 'A+' with stable outlook. The IDR reflects the extremely high probability of support available to the bank - 60 percent owned by Mubadala Investment Company - from the government.
"Fitch's assessment of potential state support, in case of need, factors in the sovereign's strong ability to support the banking system, underpinned by its solid net external asset position, still-strong fiscal metrics and recurring hydrocarbon revenue," the global rating agency said in a report.
"It also reflects the authorities' very strong, timely and predictable record of supporting its domestic banks and strategic ownership of a number of banks, including ADCB," the report said.
The ratings of the bank's unsecured debt (programmes and notes), including that issued by ADCB's special purpose vehicles (SPVs) ADCB Finance (Cayman) Limited and AHB Sukuk Company Ltd, are in line with the bank's Long- and Short-Term IDRs, reflecting Fitch's view that the likelihood of default of these obligations is the same as the likelihood of default of the bank.
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