We expect National Australia Bank Ltd. (NAB) to maintain a strong capital and earnings profile in line with our current assessment. This is despite a fall in its projected risk-adjusted capital (RAC) ratio to below 10%. The fall in the bank's RAC ratio reflects the progressive phase out of its additional Tier 1 (AT1) capital instruments from Jan. 1, 2027. This stems from the regulator's decision to not include these instruments as a component of Tier 1 capital. We affirmed our 'AA-' long-term and 'A-1+' short-term issuer credit ratings on NAB. The stable outlook on the long-term rating reflects the bank's strong franchise, stable earnings, and low credit losses. On May 15, 2025, S&P Global Ratings affirmed its 'AA-' long-term
