The ratings on National Bank of Abu Dhabi (NBAD) reflect its ownership by and special 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 concentrations, and rapid loan growth in a weakening operating environment. NBAD is the second largest bank in the United Arab Emirates (not rated) with total assets of UAE dirham (AED) 164.7 billion ($44.8 billion) on Dec. 31, 2008, and an overall market share of about 12%. The bank has a leading position in corporate banking and is rapidly growing its retail banking business. Although small in absolute terms, its
