Fitch affirms National Bank of Umm Al-Qaiwain

Fitch Ratings said it affirmed National Bank of Umm Al-Qaiwain's long-term issuer default rating at BBB+ and short-term issuer default rating of F2.

The outlook is stable.

The ratings are underpinned by a view of a high probability of support from the Emirate of Umm Al-Qaiwain and the United Arab Emirates federal authorities, Fitch said.

The ratings reflect the bank's improved funding and liquidity position, satisfactory capital and good cost control to date, the agency said.

It also reflects the bank's small franchise, rapid loan growth in previous years, weaker asset quality, concentration risk on both sides of the balance sheet and pressure on profitability as business volumes shrink, Fitch said.

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