Abu Dhabi - Mubasher: Moody's Investors Service has affirmed the long- and short-term foreign and local currency deposit and debt ratings of the National Bank of Abu Dhabi (NBAD) at "Aa3/P-1", according to a report issued on Monday.
The rating agency has also upgraded the long-term local and foreign-currency deposit and foreign-currency debt ratings of First Gulf Bank (FGB) to "Aa3" from "A2" and affirmed the short-term local and foreign-currency deposit rating of FGB at "P-1".
At the same time, Moody's has also affirmed their baseline credit assessments (BCA) at "a3" and "baa2", respectively.
“The outlook on NBAD's long-term deposit and debt ratings remains negative, in line with the outlook for the 'Aa2' long term issuer rating of the Government of the United Arab Emirates (UAE),” the report stated.
“The outlook on FGB's long-term deposit and debt ratings was changed to negative from positive, in line with the outlook for NBAD. Subsequent to the action, Moody's also said that it will withdraw the ratings of FGB,” it added.
Moody's has also assigned a provisional local and foreign currency "Aa3" long-term and definitive local and foreign currency "Prime -1" short-term ratings to NBAD's $1 billion Negotiable Certificate of Deposits (NCD) programme acting through its Singapore branch.
The NBAD had announced earlier that its merger with FGB has become effective at the close of trading on 30 March 2017.
The Securities and Commodities Authority (SCA) approved the increase in NBAD’s share capital, the dissolution of FGB, and the transfer of its rights and liabilities to NBAD from the effective date.
The new number of outstanding NBAD ordinary shares following the capital increase is 10.89 billion.
NBAD’s ordinary shares of 5.64 billion have been issued to the shareholders of FGB who appeared on the share register immediately before 30 March.
