On Nov. 26, 2008, Standard&Poor's Ratings Services revised its outlook on Netherlands-based NIBC Bank N.V. (NIBC) to negative from stable. At the same time, the 'BBB+/A-2' counterparty credit ratings were affirmed. The outlook revision reflects the deteriorating operating environment, and the increased likelihood that this may feed through to a weakening in asset quality and increased credit costs. The ratings on NIBC reflect its strong capital base and good asset quality, its niche business profile and position, wholesale funding reliance, and its track record of volatile profitability, exacerbated in recent years by its accounting treatment. The bank's reliance on wholesale funding is somewhat mitigated by its conservative liquidity management. Following a loss in 2007 from its exposure to
