Abu Dhabi-based National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) announced on July 3, 2016, that they have agreed to merge. We understand that if they successfully complete the merger, FGB's assets and liabilities will vest in NBAD, which will be the surviving entity. We are placing our 'AA-/A-1+' ratings on NBAD on CreditWatch with negative implications, to signify that, if executed, we anticipate that the planned merger could weaken NBAD's creditworthiness. At the same time, we are placing our 'A/A-1' rating on FGB on CreditWatch with positive implications, to signify that, in our view, FGB's outstanding creditors could ultimately be exposed to a bank that is more creditworthy. The deal is expected to be finalized in
