FRANKFURT (S&P Global Ratings) Feb. 27, 2020--S&P Global Ratings today said that its ratings on Slovenian market leader Nova Ljubljanska Banka D.D. (NLB; BBB-/Stable/A-3) can absorb the planned 83% acquisition of Serbia's second-largest lender Komercijalna Banka (KB; not rated) from the Serbian government in the near term. We expect NLB to soundly restore its capitalization through improved and higher earnings retention and additional hybrid capital increases, exceeding the 15.25% regulatory capital requirement (including all buffers) at all times. This is well in line with our unchanged neutral capital and earnings assessment as indicated by a risk-adjusted capital ratio of 7%-10%. Mainly due to 2019 income recognition and recent Tier 2 issues, NLB expects to post a combined pro forma 17.7%
