The ratings on The National Commercial Bank (NCB) reflect the bank's leading commercial position and rapid recovery in both profitability and asset quality. The ratings on the bank also include a two-notch uplift to reflect majority government ownership, as well as the opinion of Standard&Poor's Ratings Services that the government of Saudi Arabia would be likely to provide extraordinary support to systemically important banks in distress. Capitalization, one of the bank's main weaknesses in the past, is back to high levels. These factors are mitigated, however, by concentration risks stemming from limited geographic diversification, together with a short track record of strong and stable financial performance. NCB has benefited from massive state support to solve its past problems.
