...Support Drives IDRs: Union National Bank's (UNB) Issuer Default Ratings (IDRs) are driven by an extremely high probability of support from the UAE and Abu Dhabi authorities, if needed. This reflects a long history of support in the UAE and considers the bank's domestically systemically important bank (D-SIB) status in the UAE, and in particular in Abu Dhabi. UNB's Viability Rating (VR) reflects its well established corporate franchise, strong capital, adequate asset quality, healthy profitability and sufficient liquidity buffers. The VR also considers the bank's high balance-sheet concentrations and weak retail funding base. Well Established Franchise: UNB has a solid domestic corporate-focused franchise and has developed its retail lending business in recent years. Its international franchise is concentrated mainly in Egypt, which accounted for 6% of consolidated assets at end-2017. Strong Capitalisation: The Fitch Core Capital (FCC) ratio was sound at 16.8% at end-1H18. The Tier 1 ratio...
