Fitch: Emirates NBD on watch

Fitch Ratings said it placed Emirates NBD's viability rating of BBB and on Rating Watch negative.

The agency also said it affirmed the bank's long-term issuer default rating at A+.

The outlook is stable.

The negative watch reflects concerns about the company's weaker asset-quality outlook, reflecting the continuing stress in the real estate sector and the uncertain global outlook, Fitch said.

The agency said it has increasing concerns that retail, private-sector corporate and Islamic lending are deteriorating faster than previously anticipated.

Mitigating asset-quality trends to some extent, the company has solid cash flow and is recognizing potential future losses by building up specific and general reserves in recent quarters, Fitch said.

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