Moody's cuts outlooks on four UAE banks

Moody's Investors Service said it revised downwards the outlooks on the ratings of four banks based in the United Arab Emirates.

The outlooks for Abu Dhabi Commercial Bank, First Gulf Bank, and Dubai Islamic Bank have been changed to negative from stable, while the outlook on Dubai Bank has been changed to stable from positive.

Concurrently, the agency said that the outlooks on the ratings for all senior unsecured debt issued by the above-named banks have also been revised accordingly.

"Today's rating action reflects: (i) the mounting liquidity pressures in the short to medium term; (ii) the growing downward pressures on asset prices (mainly stocks and properties); and (iii) the anticipated profitability pressures from rising funding costs derived from increasingly scarce liquidity and loss of confidence," explained John Tofarides, analyst in Moody's Financial Institutions Group.

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