S&P lifts National Bank of Fujairah

S&P said it upgraded the National Bank of Fujairah PJSC’s issuer rating to BBB+ from BBB.

“The UAE's authorities have a strong track record of supporting local banks and their capacity to do so has improved, in our view. Notwithstanding a potential slowdown in real growth, we expect favorable macroeconomic conditions to remain supportive of the government's fiscal position (Abu Dhabi contributes the largest proportion to the UAE's federal budget) including its capacity to support banks, if needed. Although developing, the local capital market remains relatively small, and we expect the banking system will continue to play a very important role in the financing of the economy,” S&P said in a press release.

With the capacity for potentially greater government support a three-notch uplift underpins the higher rating, whereas before the uplift was for two notches, S&P said.

The outlook is stable.

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