National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) have announced that their merger became effective on March 30, 2017. NBAD is the legal successor of FGB and has assumed all of FGB's assets and liabilities. We see a strong rationale for the merger because FGB complements NBAD's franchise, reinforces its business position, and strengthens its profitability. Consequently, we are affirming our 'AA-/A-1+' ratings on NBAD and removing them from CreditWatch negative. At the same time, we are withdrawing our ratings on FGB as it ceased to exist from March 30, 2017. NBAD now assumes all of FGB's existing debt. The stable outlook reflects our view that, despite the difficult operating environment in the Gulf, NBAD will maintain
