Fitch Ratings affirmed the long-term Issuer Default Ratings (IDRs) of First Abu Dhabi Bank (FAB) and HSBC Bank Middle East at 'AA-', the ratings of Emirates NBD, Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and Al Hilal Bank (AHB) at 'A+', and the IDRs of Dubai Islamic Bank (DIB) at 'A'. It added that the outlook on all the banks' ratings is 'stable'. It said that the IDRs of HSBC Bank Middle East reflect a strong probability of institutional support from its parent, HSBC Holdings, if needed. It indicated that the ratings on the remaining banks are driven by the government's strong capacity and willingness to support banks. It noted that the high probability of support is underpinned by the UAE's sovereign wealth funds and sustained revenues from hydrocarbon output, as well as by the moderate size of the banking sector relative to the country's GDP. It added that the planned merger of ADCB with UNB and the acquisition of AHB will be credit neutral for the three entities, as the transaction will not affect their IDRs. However, Fitch noted that it will change its support assessment for the government owned AHB from sovereign to institutional, once the acquisition is completed. In parallel, the agency maintained the Viability Ratings (VRs) of FAB at 'a-', of HSBC Bank Middle East at 'bbb', of DIB, Emirates NBD and ADCB at 'bb+', and the VR of AHB at 'b+'. Also, it placed the 'bbb-' VR of UNB on Rating Watch Negative following the announcement of the merger with ADCB that has a lower VR. 
Source: Fitch Ratings