Fitch Ratings-London/Dubai/Paris-28 September 2015: Fitch Ratings has assigned Dubai-based Emirates Islamic Bank PJSC (EI) a Long-term foreign currency Issuer Default Rating (IDR) of ‘A+’ and a Viability Rating (VR) of ‘bb-‘. The Outlook on the Long-term IDR is Stable. A full list of rating actions is available at the end of this rating action commentary.
KEY RATING DRIVERS: IDRS AND SUPPORT RATING
EI’s IDRs and Support Rating reflect Fitch’s view that EI is a key and integral subsidiary of its 99.85% shareholder, Emirates NBD (ENBD; A+/Stable/F1). ENBD’s IDRs are based on potential support available from the UAE and Dubai authorities, if need be. In Fitch’s view, this support would flow through to EI given EI’s role and track record in the group (offering retail, SME and small corporate Islamic finance services for the group), the very high reputational risk to ENBD of an EI default, as well as the Central Bank of United Arab Emirates’ (CBUAE) inclination to favour support as EI operates in the same home market as ENBD.