The ratings on National Bank of Abu Dhabi (NBAD) reflect its majority ownership by and strong 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 single-name concentrations on both sides of the balance sheet, deteriorated operating environment, and its high exposure to the real estate and construction sectors. NBAD is 70.5% owned by the Abu Dhabi government through government agency Abu Dhabi Investment Council (ADIC, not rated). It is the second-largest bank in the United Arab Emirates (UAE; not rated), reporting total assets of UAE dirham (AED) 200.8 billion ($54.7 billion) on March
