On Nov. 8, 2006, Standard&Poor's Ratings Services placed its 'AA-' long-term rating on National Australia Bank Ltd. (NAB) on CreditWatch with positive implications. A progressive strengthening of NAB's financial profile has contributed to the CreditWatch placement. The bank's financial profile has benefited from a number of measures including strong asset quality, improved operational efficiency, as well as improved diversity of earnings, and is well placed to contend with a higher level of bad debts should there be a moderation in the credit cycle. Continued improvements in NAB's securitization capabilities have assisted with balance-sheet management flexibility, including credit risk and capital management, as well as funding diversity. Investments in broader risk management capabilities have improved the bank's operational management
