Fitch Ratings has affirmed National Bank of Abu Dhabi's
(NBAD) Long-term Issuer Default Rating (IDR) at 'AA-' with a Stable Outlook and
its Viability Rating at 'a-'. A full list of rating actions is at the end of
this release.
NBAD's IDRs, Support Rating and Support Rating Floor reflect Fitch's belief that
there is an extremely high probability of support from the government of Abu
Dhabi (rated 'AA'/Stable/'F1+') in the first instance, and also from the UAE
authorities, if required. This is based on NBAD's importance to Abu Dhabi and to
the UAE banking system, the bank's majority (70.5%) ownership by - and close
ties to - the Abu Dhabi government, and the UAE authorities' long record of
support for domestic banks.
The Viability Rating reflects the bank's strong franchise, especially in Abu
Dhabi; its close links to the Abu Dhabi government, which benefit both its
lending and its funding profile; its consistently sound profitability; and its
relatively sound asset quality, despite some deterioration. The rating also
reflects concentrations in loans and deposits and risks inherent in the UAE
operating environment.
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