DBRS Upgrades Guaranteed Debt of National Asset Management Limited to A (high), Stable Trend

DBRS Ratings Limited (DBRS) has today upgraded the Guaranteed Senior Unsecured Debt rating of National Asset Management Limited’s (NAML or the Group) to A (high) and the Short-Term
Guaranteed Senior Unsecured Debt rating to R-1 (middle). The trend on both ratings is now Stable. This rating action follows DBRS’s upgrade of the Republic of Ireland to A (high) / R-1 (middle) with a Stable trend on March 11, 2016.

National Asset Management Limited is a special purpose vehicle set up by Ireland’s National Asset Management Agency (NAMA) and is responsible for issuing government guaranteed debt instruments for the purposes of acquiring eligible bank assets. National Asset Management Limited is a wholly-owned subsidiary of National Asset Management Agency Investment Limited, which is 51% owned by private investors and 49% owned by NAMA. For the nine months to end-September 2015, NAMA reported a net profit after tax of EUR 571 million.

On March 16, 2016 NAMA redeemed a further EUR 2.5 billion of senior notes, bringing the total cumulative amount redeemed to EUR 24.6 billion, or 81% of the EUR 30.2 billion debt originally issued to acquire the bank assets. As a result NAMA has now met its end-2016 target to have redeemed 80% of its senior debt.

As a result of the guarantee, the Guaranteed ratings will move in line with the ratings of the Republic of Ireland.

Notes:
All figures are in Euros (EUR) unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (December 2015). Other applicable methodologies include the DBRS Criteria – Support Assessments for Banks and Banking Organisations (March 2016), DBRS Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities (February 2016) and DBRS Criteria: Guarantees and Other Forms of Explicit Support (February 2016). These can be found can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include SNL Financial, company documents and the National Treasury Management Agency. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historic default rates published by the European Securities and Markets Administration (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Lead Analyst: Ross Abercromby
Rating Committee Chair: Roger Lister
Initial Rating Date: October 20, 2005
Most Recent Rating Update: September 29, 2015

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