...First Abu Dhabi Bank P.J.S.C.'s (FAB) Issuer Default Ratings (IDRs) are driven by potential support from both the UAE (AA-/Stable) and Abu Dhabi (AA/Stable) authorities, if needed. This reflects the authorities' strong ability to support the banking system, if needed, and its record of doing so. FAB is rated one notch above other Abu Dhabi-based domestic systemically important banks given its flagship status in Abu Dhabi in particular. FAB's Viability Rating (VR) primarily reflects its very strong domestic franchise, sound funding and liquidity profile, and typically solid financial metrics. The `a-' VR is assigned above the `bbb+' implied VR due to an adjustment from the business profile rating factor. Favorable Environment: Operating conditions were solid for UAE banks in 2023, and Fitch Ratings expects these to remain strong in 2024. Fitch forecasts a moderate slowdown of lending growth in 2024 (to 5% vs 6.2% in 9M23) due to still-high interest rates and lower demand for credit after...
