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 high profitability, and strong asset quality. Nevertheless, the rating is constrained by the concentration of NBAD's loan portfolio in government entities, the bank's reliance on public sector deposits for funding, and its below-average capital position. NBAD is the largest bank in the United Arab Emirates (UAE) with total assets of UAE dirham (AED) 43.6 billion ($11.9 billion) at Dec. 31, 2003. The government of Abu Dhabi has a 73% shareholding in NBAD, which is the Abu Dhabi government's lending arm. Loans to the government and the public sector accounted for a high
