National Bank of Abu Dhabi upgraded to sovereign level
Capital Intelligence, the international emerging markets rating agency based in Cyprus, has raised the foreign currency ratings of the National Bank of Abu Dhabi (NBAD) to A+ long-term and A1 short-term, from A and A2 respectively.
The ratings were changed following the recent upgrade in the foreign currency ratings of the United Arab Emirates (UAE) sovereign to A+ long-term and A1 short-term (from A and A2 respectively).
The financial strength rating is unchanged at A+, the support rating is maintained at one and the outlook is ‘Stable. These ratings reflect NBAD’s ownership by the government of Abu Dhabi, its good financials and strong management.
NBAD is the largest bank in the country in terms of total assets, loans, deposits and net profit. It also has the largest branch network and a sizeable domestic customer franchise. The Bank runs profitable operations overseas, giving it a more diversified earnings base than many of its peers in the country.
The Bank is well managed with well laid down strategies that focus on building a broad business base. NBAD books large volumes of low-risk, but low-yielding, Abu Dhabi government business, both on- and off-balance sheet.
However, an increasing focus on retail banking activities and private sector corporate credit has improved overall profitability in recent years. NBAD’s asset quality is good and the small portfolio of bad debts is well provided for. Its liquidity is well managed and capitalization is more than adequate. — (menareport.com)
© 2003 Mena Report (www.menareport.com)