LONDON (Standard&Poor's) Aug. 15, 2007--Standard&Poor's Ratings Services said today that the 'A-' long-term counterparty credit rating on Netherlands-based NIBC Bank N.V. (NIBC) remains on CreditWatch with negative implications. This follows today's announcement that NIBC's owners, a consortium of investors led by J.C. Flowers&Co. LLC, have reached an agreement to sell NIBC to Iceland-based Kaupthing Bank hf (not rated). NIBC's current shareholders will receive NIBC's U.S. sub-prime portfolio (valued at about €391 million at June 30, 2007) as part of the €2.985 billion transaction. This transfer should reduce future earnings volatility, although we note that the bank will retain other potentially volatile U.S. structured credit portfolios. Standard&Poor's continues to explore various issues with
