Leading franchise in the United Arab Emirates (UAE). Strong capitalization and superior earnings generation. Stable base of core deposits and strong liquidity. Deteriorating operating environment. Large concentration on both the asset and liability sides of the balance sheet. Sizable exposure to the weak real estate market in the UAE. The negative outlook reflects S&P Global Ratings' view that the weak operating environment, increasing cost of risk, and lower interest rates may weaken First Abu Dhabi Bank (FAB)'s profitability to a level more comparable with its peer group. FAB's superior earnings metrics have been a stand-out characteristic of its credit profile, allowing it to more easily cover unexpected losses than peers. We would lower the rating in the next 12-24 months,
