Abu Dhabi-Mubasher: Fitch Ratings has affirmed six UAE banks' ratings; National Bank of Abu Dhabi (NBAD), First Gulf Bank (FGB), Abu Dhabi Commercial bank (ADCB), Union National Bank (UNB), Emirates NBD (ENBD) and HSBC.
The banks were assigned support ratings of '1', reflecting the extremely high probability of state support, the agency said, assigning ADCB 'AA-' rating, with stable outlook.
Fitch's view of support considers the sovereign's strong capacity to support the banking system, sustained by its sovereign wealth funds and on-going revenues mostly from its hydrocarbon production, despite the lower oil prices, and the moderate size of the UAE banking sector in relation to the country's GDP.
The agency affirmed FGB, UNB and ENBD's ratings at 'A+', with stable outlook. It also maintained HSBC Middle East's rating at 'AA-', with stable outlook.
Fitch also expects there is high willingness 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 of a number of banks.
