Moody's confirms ratings of five UAE banks

Moody’s Investors Service has confirmed the long-term ratings of five UAE banks. The short-term issuer ratings of one bank were also confirmed.

The action concludes Moody’s review of five UAE banks’ ratings that was initiated on March 7, 2016, and follows Moody’s confirmation of UAE government issuer rating at Aa2, with a negative outlook, on May 14, 2016.

Moody’s said its decision to confirm the ratings of five UAE banks is underpinned by the continued capacity and willingness of the government to provide support to the banks in times of stress as indicated by the confirmation of the Aa2 rating.

However, all the banks’ ratings have been placed on negative outlook. Moody’s explained that the negative outlook mirrors the negative outlook on the sovereign rating and captures UAE's fiscal pressures.

The banks and their confirmed ratings are:

- National Bank of Abu Dhabi: Aa3

- Abu Dhabi Commercial Bank: A1

- Union National Bank: A1

- Al Hilal Bank: A1

- Abu Dhabi Islamic Bank: A2.