DBRS Confirms Gteed Debt of National Asset Management DAC at A (high), Stb

DBRS Ratings Limited (DBRS) has today confirmed the Guaranteed Senior Unsecured Debt rating of National Asset Management DAC (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 February 24, 2017.

National Asset Management Designated Activity Company is a special purpose vehicle set up by Ireland’s National Asset Management Agency (NAMA) and is the entity responsible for issuing government guaranteed debt instruments (and subordinated debt) for the purposes of acquiring eligible bank assets. NAMDAC is a wholly-owned subsidiary of National Asset Management Agency Investment DAC, which is 51% owned by private investors and 49% owned by NAMA. For the nine months to end-September 2016, NAMA reported a net profit after tax of EUR 795 million.

On February 8, 2017 NAMA redeemed a further EUR 1.1 billion of senior notes, bringing the total cumulative amount redeemed to EUR 28.7 billion, or 95% of the EUR 30.2 billion senior debt originally issued to acquire the bank assets. As a result the amount of senior debt outstanding stands at EUR 1.5 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 2017) and DBRS Criteria: Guarantees and Other Forms of Support (February 2017). 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.

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 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 FIG
Rating Committee Chair: Roger Lister, Managing Director, Chief Credit Officer - Global FIG and Sovereign Ratings
Initial Rating Date: April 21, 2011
Most Recent Rating Update: September 9, 2016

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