Fitch Affirms Dubai Islamic Bank’s Long-Term IDR at ‘A’; Stable Outlook

Dubai Islamic Bank’s (DIB) long-term Issuer Default Rating (IDR) has received affirmation at ‘A’ by Fitch Ratings (Fitch), with a Stable Outlook.

The rating affirmation is driven by the high probability of support from the United Arab Emirates (UAE) authorities (AA-/Stable) to the bank if needed, which is reflected by the sovereign’s robust capacity to support the domestic banking system due to its solid external asset position, robust fiscal metrics, and hydrocarbon revenues. In addition, the UAE authorities have close associations with, as well as part-ownership of a number of banks, including DIB, which is 25.8% owned through the investment arm of the Dubai government.

Furthermore, Fitch noted that the ratings of the senior unsecured Sukuk...