The ratings on NIBC Bank N.V. 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 U.S. subprime and commercial real estate (CRE) securities arising from financial markets activities, NIBC has refocused its operations on its traditional mid-cap Benelux corporate banking business, and its specialized lending operations including shipping, infrastructure, and real estate. At Sept. 30, 2008, NIBC had total assets of €26.9 billion (down from €31.8 billion at year-end 2007), and reported a
