Dubai-Mubasher: Fitch Ratings placed First Gulf Bank's (FGB) long- and short-term IDRs, support rating floor (SRF) and viability rating (VR) on rating watch positive (RWP), according to a statement.
The agency also affirmed all of National Bank of Abu Dhabi's (NBAD) support-driven ratings with stable outlooks and placed its VR on rating watch negative (RWN).
FGB's ratings reflect Fitch's view of potentially higher support propensity of the bank by the UAE authorities and Abu Dhabi’s government (AA/Stable/F1+) once the merger is completed.
The affirmation of NBAD's SRF at "AA-" shows the bank's current flagship status and high systemic importance in the UAE and Abu Dhabi in particular, in addition to Fitch's view that NBAD will retain its importance and status after the merger.
FGB and NBAD announced early July that their boards approved the shareholders’ recommendation regarding the merger of both lenders.
