The ratings on the National Bank of Abu Dhabi (NBAD) reflect the bank's ownership by and special relationship with the government of the oil-rich Emirate of Abu Dhabi (not rated); strong domestic commercial position; robust financial profile; and good asset quality. The ratings are constrained by NBAD's narrow domestic market with increasing competition, large concentrations, and the volatility of public sector deposits. NBAD is the largest bank in the United Arab Emirates (UAE; not rated) with total assets of United Arab Emirates dirham 84.9 billion ($23.1 billion) at Sept. 30, 2006. The bank has a leading position in corporate banking and is rapidly growing its retail-banking business. Although small in absolute terms, its customer franchise is among the strongest in
