NBAD's short, long term FC rating rises

The financial strength rating is affirmed at A+, and the support rating is unchanged at 1. All ratings carry a stable outlook.

The upgrade reflects the recent one notch increase in the ratings of the sovereign, which is a majority shareholder of the bank. NBAD's large size (with total assets of $27 billion at end 2006), its overall

sound financial fundamentals, its widespread physical presence in the country and its importance to the local economy coupled with a high support rating are major factors underpinning the increase in the foreign currency ratings.

Apart from a sizeable domestic franchise, NBAD also has a geographically diversified asset base with a meaningful presence overseas.

The Bank's subordinated convertible bond issue in 2006 has strengthened its capitalisation ratio and paves the way for a

sizeable growth in assets in the future. The increasing diversification of resources through the issuance of convertible debt, medium-term notes and commercial paper is a positive development.