We think that NIBC Bank N.V.'s proactive balancing of its funding profile has increased its overall resiliency. Alongside asset repricing and improving operational efficiency, the replacement of more confidence-sensitive wholesale funding has also led to improving profitability, which we think will be more predictable over time. As a result, we are raising our long- and short-term counterparty credit ratings to 'BBB/A-2' from 'BBB-/A-3' and our issue rating on the bank's additional Tier 1 instrument to 'BB-' from 'B+'. The stable outlook reflects our expectation that NIBC will maintain its niche franchise, strong capitalization, similar risk appetite, and sound asset quality. On Oct. 12, 2017, S&P Global Ratings raised its long- and short-term counterparty credit ratings on Netherlands-based NIBC Bank N.V.
