Moody's upgrades NBK to Aa3 from A2

The rating action follows Moody's recent similar action on Kuwait's long-term foreign currency bank deposit ceiling and concludes the review for upgrade of the bank's foreign currency deposit ratings.

Moody's explains that the long-term foreign currency deposit ratings assigned to NBK are placed at Aa3, reflecting the bank's intrinsic financial strength and its systemic importance to the domestic banking system. Moody's notes that the Aa3 ratings of NBK are constrained by the Aa3 foreign currency ceiling for such deposits in Kuwait, and would be upgraded further, at least to the Aa2 level, should the country ceiling for foreign currency deposits in Kuwait 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, on the basis of its 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 underlying the Bank's superior ranking.

NBK's total assets reached USD 24.2 billion at the end of September 2006, while its shareholders' equity stood at USD 2.8 billion.