NBAD’S CREDIT RATINGS AFFIRMED POST MERGER

Tuesday 04 April 2017

Abu Dhabi - MENA Herald: Following the legal completion of the merger between First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD), Fitch Ratings, Moody’s and Standard & Poor’s have affirmed NBAD’s ratings at AA-, Aa3 and AA- respectively. Standard & Poor’s has also removed ‘CreditWatch Negative’ and assigned a ‘stable outlook’ to its rating on NBAD. All credit ratings on FGB have been withdrawn following merger completion.
Abdulhamid Saeed, Group CEO of the new bank, said: “The affirmation of these ratings is a powerful testament to the strong rationale for the merger of FGB and NBAD. By combining these two successful Abu Dhabi banking franchises, we have created a larger and stronger financial institution with an enhanced business and credit profile, which is well-positioned to support the UAE and region’s vision for economic development and growth. As we continue to embark on this new journey, we are confident that this is another milestone in a long series of significant achievements for the new bank in the months and years ahead.”
The merger creates one of the largest banks in the region with more than AED 670 billion (USD 183 billion) in total assets. As a well-diversified and dominant banking franchise, the bank is being led by a robust governance framework and a strong and prominent Board of Directors. Their expertise and guidance will support the new entity’s growth journey and enable it to expand its business regionally and internationally.

Currently, the bank boasts a robust capital position and enhanced revenue-generation capacity, enabling it to fulfill its goals of driving top shareholder value. Possessing excellent asset quality metrics, an enhanced diversification profile and strong funding and liquidity metrics, the bank is also strongly positioned to comply with UAE Central Bank Basel-III capital guidelines.

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