On May 31, 2005, Standard&Poor's Ratings Services assigned its 'A-/A-2' long- and short-term counterparty credit and certificate of deposit ratings to Saudi Arabia-based The National Commercial Bank (NCB). The outlook is stable. The ratings reflect NCB's majority ownership by Saudi government entities, leading commercial position, and rapid recovery in both profitability and asset quality. Capitalization, one of the bank's main weaknesses in the past, is back to strong levels. Concentration risks stemming from limited geographic diversification, together with a short track record of superior and stable financial performance nevertheless mitigate these factors. NCB has benefited from massive state support to solve its past problems. In 1999, the Saudi state acquired 50% of the bank's shares. A new board
