3OREANDA-NEWS. Fitch Ratings has revised Union de Banques Arabes et Francaises' (UBAF) Outlook to Positive from Stable. UBAF's Viability Rating (VR) is unaffected by this rating action. A full list of rating actions is available at the end of this rating action commentary.

The revision of the Outlook to Positive reflects a similar action Credit Agricole Corporate and Investment Banking's (CACIB) and Credit Agricole's (CA) Outlooks.

KEY RATING DRIVERS

IDRS, SUPPORT RATING AND SENIOR DEBT
UBAF's IDRs and Support Rating are driven by potential support from CACIB (its 47% shareholder), part of CA. Fitch believes that timely financial support would be provided by CACIB, or ultimately by CA, if required, as CACIB is UBAF's designated reference shareholder.

The two-notch difference between CACIB's and UBAF's Long-term IDR reflects Fitch's opinion that UBAF is of limited importance to the parent. This considers UBAF's role and franchise and its limited synergies with the group. This is counterbalanced by the high reputational risk for the parent if UBAF were to default. The Positive Outlook on UBAF's Long-term IDR mirrors that on CACIB and CA.

RATING SENSITIVITIES

IDRS, SUPPORT RATING AND SENIOR DEBT
The ratings are sensitive to a change in Fitch's view of UBAF's importance to its parent and could be negatively affected if the links between UBAF and its parent weaken. They are also sensitive to changes in CACIB's, and ultimately CA's, IDRs.

The rating actions are as follows:

Long-term IDR affirmed at 'BBB+'; Outlook revised to Positive from Stable
Short-term IDR affirmed at 'F2'
Support Rating affirmed at '2'
Viability Rating: 'bb+' unaffected