The National Commercial Bank

Leading business position with some geographic diversification. Strong capitalization, supported by sound preprovision earnings capacity. Operating in a protected market with sound regulation and favorable funding conditions. Credit risks stemming from construction sector exposures in Saudi Arabia and operations in Turkey. High single-name concentration in the lending book. The stable outlook on Saudi Arabia-based The National Commercial Bank (NCB) reflects S&P Global Ratings' expectation that the bank will continue to benefit from its leading market position and sound capitalization over the next 12-24 months. We could raise our ratings on NCB over the next 12-24 months if the bank improves its asset quality indicators to peers' levels amid the less supportive Turkish and, to a lesser extent, local operating environments.

...High single-name concentration in the lending book. Outlook: Stable The stable outlook on Saudi Arabia-based The National Commercial Bank (NCB) reflects S&P Global Ratings' expectation that the bank will continue to benefit from its leading market position and sound capitalization over the next 12-24 months. We could raise our ratings on NCB over the next 12-24 months if the bank improves its asset quality indicators to peers' levels amid the less supportive Turkish and, to a lesser extent, local operating environments. A downgrade of NCB seems unlikely in the next 12-24 months. However, it could occur if we were to downgrade Saudi Arabia and the bank's capitalization drops significantly due to a sharp increase in dividend payouts or a spike in credit losses....

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