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The ratings on Union de Banques Arabes et Francaises (UBAF) are driven by shareholder support from its largest shareholder, Credit Agricole Corporate and Investment Bank (CACIB), part of Credit Agricole’s (CA; A+/Stable) legally established cross-support mechanism. Despite UBAF's limited importance to its parent, ���������ֳ� believes CACIB would provide timely financial support due to reputational risk and the small size of UBAF. UBAF's Viability Rating reflects its niche trade finance focus, high concentration risks, and low but improving profitability. Geopolitical tensions are expected to slow world trade, impacting UBAF's operations. The bank has improved its asset quality significantly, with a near-zero non-performing assets ratio by end-2023. However, its capital base remains vulnerable, and regulatory limits constrain business volume growth. UBAF's funding is supported by CACIB's ownership. Future rating actions depend on changes in CACIB's ratings and UBAF's financial performance.

This abstract may have been generated in whole or in part using artificial intelligence and is therefore subject to error and inaccuracy, including but not limited to, hallucination. Further disclaimer can be found