TEXT-S&P summary: NIBC Bank N.V.

(The following statement was released by the rating agency)

Oct 19 -

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Summary analysis -- NIBC Bank N.V. -------------------------------- 19-Oct-2012

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CREDIT RATING: BBB-/Negative/A-3 Country: Netherlands

Primary SIC: Misc. business

credit

institutions

Mult. CUSIP6: 62914A

Mult. CUSIP6: 62914E

Mult. CUSIP6: N2413#

Mult. CUSIP6: N6304J

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Credit Rating History:

Local currency Foreign currency

08-Dec-2011 BBB-/A-3 BBB-/A-3

24-Sep-2009 BBB/A-2 BBB/A-2

18-Mar-2008 BBB+/A-2 BBB+/A-2

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Ratings Score Snapshot

Issuer Credit Rating BBB-/Negative/A-3

SACP bbb-

Anchor a-

Business Position Weak (-2)

Capital and Earnings Adequate (0)

Risk Position Adequate (0)

Funding and Liquidity Below Average

and Adequate (-1)

Support 0

GRE Support 0

Group Support 0

Sovereign Support 0

Additional Factors 0

Major Rating Factors

Strengths:

-- Sound capitalization.

-- Good management capabilities and clear strategic focus.

-- Continued increase in retail deposit base.

Weaknesses:

-- Moderate scale of franchise.

-- Elevated - albeit decreasing - reliance on wholesale funding.

-- Despite improvements, track record of volatile profitability.

Outlook

Standard & Poor's Ratings Services' negative outlook on Dutch NIBC Bank N.V. reflects the possibility that we could lower the ratings on NIBC if we were to take a more negative view of the economic environment in which Dutch institutions operate, in the absence of offsetting considerations specific to NIBC. Although we recognize the clouded economic backdrop, we expect that the bank should be able to maintain broadly stable capital and risk positions, while continuing to rebalance its funding profile.

We could lower the ratings on NIBC if we see increasing signs of systemwide stress, leading us to reassess the economic risk of The Netherlands, or a material increase in the cost of risk.

Conversely, we could revise the outlook back to stable if we consider that the economy is stabilizing, combined with continued resilience in the bank's asset quality. Furthermore, evidence that our risk-adjusted capital (RAC) ratio for the bank could rise above 10% in a sustainable manner could offset potential pressure on the bank's anchor. In the longer term, a sustainable rebalancing of the bank's funding profile, with decreasing reliance on wholesale funding, and further evidence of stability of the customer deposit base, could improve our stand-alone assessment of the bank.