Strong market positions in key market segments Solid asset quality and underwriting standards Sound earnings profile Regulatory sanctions impeding capital flexibility Exposure to highly competitive market segments On Nov. 8, 2006, Standard&Poor's Ratings Services placed its 'AA-' long-term rating on National Australia Bank Ltd. (NAB) on CreditWatch with positive implications. A progressive strengthening of NAB's financial profile has contributed to the CreditWatch placement. The bank's financial profile has benefited from a number of measures including strong asset quality, improved operational efficiency, as well as improved diversity of earnings, and is well placed to contend with a higher level of bad debts should there be a moderation in the credit cycle. Continued improvements in NAB's securitization capabilities have assisted
