Moody’s: National Bank of Abu Dhabi securities Baa3

Moody's Investors Service said it assigned a provisional Baa3 (hyb) rating to the upcoming issuance of perpetual non-cumulative Additional Tier 1 (AT1) capital securities by National Bank of Abu Dhabi (deposits Aa3 stable, baseline credit assessment of a3).

The capital securities constitute direct, conditional, subordinated and unsecured payment obligations of National Bank of Abu Dhabi and rank pari passu without preference amongst themselves.

As such, the provisional Baa3 (hyb) rating assigned to the AT1 capital securities is based on the bank’s creditworthiness, and is placed three notches below the bank's a3 adjusted baseline credit assessment. The three-notch downward adjustment is a result of the securities' deeply subordinated claim in liquidation together with the risk of non-cumulative coupon suspension, in line with Moody's additional notching guidelines.

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