The stable outlook reflects our expectation that, over the next 12-24 months, FAB will contain further credit losses and problem loan accumulation while improving its profitability, thereby supporting strong capitalization and bolstering its ability to absorb losses. A negative rating action on FAB over the next 12-24 months is remote since it would require a three-notch deterioration of the bank's intrinsic creditworthiness, which assumes a simultaneous and significant weakening of asset-quality indicators, capitalization, and profitability. The rating could also be lowered in the unlikely scenario that we were to downgrade Abu Dhabi or if we viewed the support of the Abu Dhabi authorities as weakening. A positive rating action on FAB over the next 12-24 months is unlikely since it
