Abu Dhabi – Mubasher: Moody's Investors Service has affirmed United Arab Bank’s (UAB) long- and short-term deposit ratings at "Baa2" and "Prime-2", respectively, according to a statement.

The ratings agency also affirmed the bank’s "ba1" adjusted baseline credit assessment (BCA), "ba1" BCA ,and "Baa1 (cr)/Prime-2(cr)" counterparty risk assessment.

Moody's also changed the outlook on the bank's long-term deposit ratings to "Negative" from "Stable".

The "Negative" outlook reflects the downside risk of further asset quality deterioration, the possible pressure on profitability due to high provisioning requirements, and potential pressure on capitalisation.

Moody's affirmation of UAB's "Baa2" long-term deposit ratings reflects the bank's still sound capitalisation, funding, and liquidity, moderated by weak profitability and asset quality.