On Jan. 31, 2008, Standard&Poor's Ratings Services placed its 'A-' long-term counterparty credit rating on Netherlands-based NIBC Bank N.V. (NIBC) on CreditWatch with negative implications. At the same time, the 'A-2' short-term counterparty credit rating was affirmed. The CreditWatch placement follows an announcement by NIBC that the proposed acquisition of NIBC by Iceland's Kaupthing Bank h.f. (not rated) is being terminated by mutual agreement, due to the ongoing financial markets instability. This development leaves NIBC as an independent bank amid much tougher market conditions than in recent years. The implications for the bank's strategy and its business model are as yet unclear. Standard&Poor's will be discussing these aspects with management before the resolution of the CreditWatch
