Summary: First Abu Dhabi Bank P.J.S.C.

Leading franchise in the United Arab Emirates (UAE). Strong capitalization and superior earnings generation. Stable base of core deposits and strong liquidity. Large concentration on both sides of the balance sheet. Sizable exposure to the weak real estate market in the UAE. S&P Global Ratings' stable outlook on First Abu Dhabi Bank (FAB) reflects our view that FAB will maintain its strong customer franchise and its resilient financial profile over the next 12-24 months. This is thanks to the bank's strong earnings generation, clear strategy, robust capitalization, and sound risk management. A positive rating action on FAB over the next 12-24 months appears remote. Such an action would follow an improvement of FAB's business or financial profile, which is unlikely

...Outlook: Stable S&P Global Ratings' stable outlook on First Abu Dhabi Bank (FAB) reflects our view that FAB will maintain its strong customer franchise and its resilient financial profile over the next 12-24 months. This is thanks to the bank's strong earnings generation, clear strategy, robust capitalization, and sound risk management. A positive rating action on FAB over the next 12-24 months appears remote. Such an action would follow an improvement of FAB's business or financial profile, which is unlikely in our view. Moreover, we would consider an upgrade only if the bank's creditworthiness before incorporating external support increased by two notches. A downgrade of FAB also seems remote in the next 12-24 months because it would imply a simultaneous downgrade of the sovereign and a significant deterioration of the bank's asset quality with higher-than-expected credit losses. Although not in our base-case scenario, the ratings could also come under pressure if FAB doesn't execute...

Summary