The ratings on The National Commercial Bank (NCB) reflect the bank's majority ownership by the Saudi government, leading commercial position, and rapid improvement in both profitability and asset quality. Capitalization, one of the bank's main weaknesses in the past, is back to high levels. Concentration risks stemming from limited geographic diversification, together with a short track record of strong and stable financial performance, offset these factors, however. The ratings on the bank include a two-notch uplift to reflect the opinion of Standard&Poor's Ratings Services that the government would be likely to provide support in case of need, given NCB's shareholding structure and importance to the Saudi economy. NCB has benefited from massive state support in solving its past
