S&P Rates Bahrain Nat’l. ‘BBB+’

August 19, 2005

Standard & Poor’s Ratings Services announced that it has assigned its “BBB+” long-term counterparty credit and insurer financial strength ratings to Bahrain-based insurer Bahrain National Insurance Co. BSC (BNI) with a stable outlook.

“The ratings reflect BNI’s strong capitalization and strong operating performance, supported by a well-diversified investment portfolio,” stated S&P credit analyst Jelena Bjelanovic. “These factors are partially offset by the company’s competitive position, which is concentrated on the small Bahraini market.”

S&P said: “The stable outlook reflects Standard & Poor’s expectation that BNI will maintain its capitalization at a strong level. BNI is also expected to maintain strong operating performance, albeit not at the current level. Standard & Poor’s expects BNI to maintain its market position without materially compromising on profitability, and undertaking new initiatives without significantly increasing the risk profile of the company.”