UBAF's Short-Term IDR of 'F1', the higher of two options mapping to an 'A-' Long-Term IDR, reflects our view that, as long as it remains a reference shareholder, CACIB will ensure that sufficient liquidity is available at UBAF to meet its needs.
The company profile of UBAF constrains its VR given its niche trade finance franchise focussed on flows between Europe or Asia and its core markets in the Middle East and North Africa.
UBAF mainly provides letters of credit, guarantees and trade finance-related loans.
UBAF is exclusively funded by short-term interbank and corporate deposits, mainly denominated in US dollars.
Nonetheless, UBAF remains sensitive to event risk due to asset and geographic concentrations.