Fitch: Sharjah Islamic Bank’s Long-term Issuer Default Rating Affirmed at BBB+ with Stable Outlook

Fitch Ratings (Fitch) has affirmed the Long-Term Issuer Default Rating (IDR) of the United Arab Emirates’ (UAE) Sharjah Islamic Bank (SIB) at BBB+, with a Viability Rating (VR) of bb+ and a Stable Outlook.

Key ratings drivers supporting the affirmation of the long-term IDR include the fact that SIB is likely to receive support from the Government of the UAE if needed, with this financing being sourced through sovereign wealth funds, as well as recurring revenue from hydrocarbon production. According to Fitch, the willingness of the authorities to provide support to the banking sector is reinforced through partial government ownership of some banks in the UAE, along with a historical track record in providing said s...