Fitch Ratings affirmed the long-term rating of First Abu Dhabi Bank at “AA-” with a stable outlook. It also confirmed the bank’s short-term rating at “F1+” while maintaining its viability rating at “a-”.

The affirmation reflects the strength of potential sovereign support from the United Arab Emirates and Abu Dhabi, in addition to the bank’s position as the largest bank in the country and its strong funding and liquidity base.

The agency explained that the bank’s credit ratings are based on a government support rating of “aa-”, supported by the bank’s key role in the UAE banking system, particularly in Abu Dhabi, and its close relationship with the local government.

Fitch also noted that by the end of 2025, First Abu Dhabi Bank accounted for 25% to 30% of loans, assets, and deposits in the country’s banking sector, which strengthens its credit stability compared to local peers.

Fitch said that the bank’s non-performing loan ratio improved to 3.2% by the end of the first quarter of 2026, compared to 3.3% at the end of 2025 and 4.8% at the end of 2024, supported by loan growth and a stable operating environment.

The bank recorded strong operating profitability of 3.1% of risk weighted assets in the first quarter of 2026 on an annual basis, despite a slight increase in impairment provisions.

The agency added that the bank’s common equity tier 1 ratio reached 12.8%, while liquidity remained one of its key strengths, with a loan to deposit ratio of 79% and a liquidity coverage ratio of 145% by the end of the first quarter of 2026.

Fitch warned that any change in its view regarding the ability or willingness of the authorities in the UAE and Abu Dhabi to provide support could put pressure on the rating.

A decline in capitalization or a higher risk appetite could also lead to a downgrade of the viability rating. On the other hand, the agency believes that an upgrade in the near term is unlikely due to the already high rating levels.