OREANDA-NEWS. Fitch Ratings has assigned CBD (Cayman) Limited's (CBD Cayman) EMTN programme ratings of 'A-'/'F2'.

KEY RATING DRIVERS

CBD Cayman is a wholly owned subsidiary of United Arab Emirates-based Commercial Bank of Dubai (CBD, A-/F2/Stable).CBD Cayman is incorporated in the Cayman Islands, and set up solely to act as an issuer of debt. The bonds issued under the programme are unconditionally and irrevocably guaranteed by CBD and the proceeds will be solely used for the financing of CBD's activities.

The programme ratings are in line with CBD's Long- and Short-term Issuer Default Ratings (IDR), reflecting Fitch's view that the likelihood of default on senior unsecured notes issued under this programme will be the same as the likelihood of CBD's default.

Debt issued by CBD Cayman under the note instrument, and the obligations of CBD under the deed of guarantee, constitute direct, unconditional and unsecured and unsubordinated obligations of the issuer and of the bank, respectively, and will rank at least pari passu with all other outstanding unsecured and unsubordinated obligations of the issuer and of the bank, respectively.

The documentation includes a negative pledge provision with CBD, as well as financial reporting obligations, covenants and default acceleration clauses. The notes and any non-contractual obligations arising out of or in connection with the notes will be governed by, and shall be construed in accordance with, English law.

RATING SENSITIVITIES

The programme's ratings are sensitive to changes in CBD's Long- and Short-term IDRs. This in turn is sensitive to changes in the perceived ability or willingness of the UAE authorities to provide support to the bank. Given the robust economy, the authorities' strong track record of support for local banks and no plans for resolution legislation at this stage, downward pressure is considered low.