Majority ownership by the Saudi government Leading domestic commercial position Strong liquidity Solid capitalization Rapidly grown loan portfolio Weakened operating environment and expected deterioration of asset quality Exposure to market risk Limited but improving geographic diversification The ratings on Saudi Arabia-based The National Commercial Bank (NCB) reflect the bank's majority ownership by the Saudi government, leading domestic commercial position, strong liquidity, and solid capitalization. Partially offsetting these positive factors are the bank's rapidly grown and largely untested corporate loan book, weakened operating environment, exposure to market risk, and limited--although improving--geographic diversification. The long-term rating on NCB is two notches higher than the bank's stand-alone credit profile reflecting Standard&Poor's Ratings Services' expectation of strong likelihood of extraordinary government support
