Moody’s upgrades NBK Two Notches to Aa3

Moody's Investors Service has upgraded to Aa3 with a stable outlook, from A2, the long-term foreign currency deposit ratings assigned to National Bank of Kuwait (NBK). This is a 2-notch upgrade for NBK and follows Moody's recent similar action on Kuwait's long-term foreign currency bank deposit ceiling.

NBK’s Financial Strength Rating (FSR) remains unchanged at B-, which is among the highest ratings in all of emerging markets.

Moody's explains that the long-term foreign currency deposit rating assigned to NBK reflects NBK's intrinsic financial strength and its systemic importance to the domestic banking system. Moody's further says that the current rating for NBK remains constrained by Kuwait’s foreign currency ceiling, and would be upgraded further should the country ceiling be raised.

NBK has consistently earned the highest credit ratings in the Middle East by international agencies, including Moody’s, Standard & Poor’s and FitchRatings,. This clearly reflects NBK’s healthy performance, high asset quality, conservative risk profile and strong capital base. Rating agencies also cite the strength and depth of NBK’s management and its clear strategy as fundamental strengths.

NBK’s total assets topped USD 24 billion at the end of September 2006, while its shareholders’ equity stood at some USD 2.8 billion.