Majority ownership by the Abu Dhabi government. Strong domestic commercial position. Robust profitability. Good asset quality indicators. A narrow domestic market with stiffening competition. Deteriorated operating environment. Large concentration risks on both sides of the balance sheet. High exposure to the real estate and construction sectors. The ratings on National Bank of Abu Dhabi (NBAD) reflect its majority ownership by and strong relationship with the government of the oil-rich Emirate of Abu Dhabi (AA/Stable/A-1+), strong domestic commercial position, robust profitability, and good asset quality. The ratings are constrained by the bank's narrow domestic market with increasing competition, large single-name concentrations on both sides of the balance sheet, deteriorated operating environment, and its high exposure to the real estate and construction
