Fitch lifts six UAE banks

Fitch Ratings said it upgraded six United Arab Emirates-based banks following the assignment of foreign and local currency issuer default ratings to Abu Dhabi. The assigned ratings are issuer default ratings of long-term foreign and local currency AA with stable outlook and short-term foreign currency F1+.

The agency upgraded long-term issuer default ratings of Emirates Bank International and National Bank of Abu Dhabi to AA- from A+ and short-term issuer default ratings to F1+ from F1 to reflect the two banks' large government shareholdings and significant domestic franchises, Fitch said. The agency upgraded long-term issuer default ratings of Abu Dhabi Islamic Bank, First Gulf Bank, Mashreqbank and Union National Bank to A+ from A to reflect their important domestic franchises, Fitch said.

The issuer default ratings of banks with less significant franchises - Bank of Sharjah, Commercial Bank of Dubai and National Bank of Ras Al-Khaimah - are unchanged. The ratings of HSBC Bank Middle East also are unchanged, as support will come from its parent HSBC Holdings.

The outlook is stable.

The upgrades follow a review of all United Arab Emirates-based banks rated by Fitch and reflect the agency's updated view of Abu Dhabi's ability to provide support to the entire banking system if required, the agency said.

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