DBRS Confirms Gteed Debt of National Asset Management Designated Activity Company at A (high), Stb

DBRS Ratings Limited (DBRS) has today confirmed the Guaranteed Senior Unsecured Debt rating of National Asset Management Designated Activity Company’s (NAMDAC or the Group) at A (high) and the Short-Term Guaranteed Senior Unsecured Debt rating at R-1 (middle). The trend on both ratings remains Stable. This rating action follows DBRS’s confirmation of the Republic of Ireland at A (high) / R-1 (middle) with a Stable trend on September 2, 2016.

National Asset Management Designated Activity Company (formely known as 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 Designated Activity Company is a wholly-owned subsidiary of National Asset Management Agency Investment Designated Activity Company, which is 51% owned by private investors and 49% owned by NAMA. For the three months to end-March 2016, NAMA reported a net profit after tax of EUR 59 million.

On June 22, 2016 NAMA redeemed a further EUR 1.0 billion of senior notes, bringing the total cumulative amount redeemed to EUR 25.6 billion, or 85% of the EUR 30.2 billion debt originally issued to acquire the bank assets. As a result NAMA has now redeemed 85% of its senior debt while the amount of senior debt outstanding stands at EUR 4.6 billion.

RATING DRIVERS
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 EUR unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2016). 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 Support (February 2016). These 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 to be of satisfactory quality.

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.

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.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“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, Senior Vice President, Global Financial Institutions Group
Rating Committee Chair: Roger Lister, Managing Director, Chief Credit Officer, Global Financial Institutions Group and Sovereign Ratings
Initial Rating Date: April 21, 2011
Most Recent Rating Update: March 16, 2016

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