Standard & Poor's raises NBK's long-term credit rating to 'A+' on strong financials; outlook stable

At the same time, the 'A-1' short-term rating was affirmed and the outlook is stable. The upgrade reflects the bank's excellent track record of superior financial performance, amid economic momentum in the local market, as well as its unchallenged leading commercial position.

Mr. Ibrahim Dabdoub, CEO of NBK, commented on the rating upgrade saying that they 'we take pride of the new upgrade by S&P which reflects our solid growth and lead position as the highest rated bank in the Middle East. We are pleased to see our strategic actions continue to yield positive results.'

S&P said in a statement that the stable outlook reflects NBK's strong commercial and financial profile. Overall, NBK's preeminent domestic position is unmatched, enabling the bank to mitigate risks linked to the restricted playing field of the non-oil private sector and to maintain healthy operating profitability.

NBK is the largest bank in Kuwait, with total consolidated assets of $29.3 billion at March 31, 2007. It has a number one market share in retail banking and enjoys privileged access to most of the country's major corporations. The bank is looking to expand regionally, but we do not expect this expansion to significantly alter its risk profile, S&P added.

NBK has one of the best regional track records of high and sustained financial performance, with ROE in excess of 25% over the past decade. Profitability surged even higher in the past three years, benefiting from an efficient cost structure, expansion in retail banking and a very supportive economic environment.

NBK has consistently earned the highest credit ratings in the Middle East by international agencies including Moody's, Standard & Poor's and FitchRatings, in recognition of its healthy performance, fine asset quality and solid capital base. Rating agencies also praise the depth and stability of NBK's management and its clear strategy as fundamental pillars for the Bank's superior ranking. NBK's shareholders' equity stood at USD 2.97 billion (KD 859 million) at the end of March 2007.