The public information ("pi") rating on National Bank of Abu Dhabi (NBAD) reflects the bank's privileged relationship with the government of the oil-rich Emirate of Abu Dhabi, its improving profitability and strong asset quality. Nevertheless, the rating is constrained by the concentration of the bank's loan portfolio in governmental entities, its reliance on public sector deposits for funding, and its below average capital position. NBAD is the largest bank in the United Arab Emirates (UAE) in terms of total assets, measuring United Arab Emirates dirham (AED) 32.3 billion ($8.8 billion) at Dec. 31, 2001. The government of Abu Dhabi has a 73% shareholding in NBAD. As NBAD is the Abu Dhabi government's lending arm, loans to the government and the
