National Bank of Greece S.A.

Prominent market shares in Greece. Very high structural dependence on Eurosystem funding. High exposure to Greece's weak domestic economy. Large stock of nonperforming assets (NPAs). Poor profitability. The stable outlook reflects our opinion that, despite the bank's fragile financial profile, we do not expect National Bank of Greece (NBG) to face a near-term default on its obligations. We could lower the ratings if we see deterioration in the bank's liquidity position due to the bank losing access to funding provided by the European liquidity support mechanisms, or if we foresee such support being insufficient to meet the bank's financing needs. Any positive rating action would require increased confidence in the banking system and a significant improvement in the macroeconomic environment,

...Poor profitability. Outlook The stable outlook reflects our opinion that, despite the bank's fragile financial profile, we do not expect National Bank of Greece (NBG) to face a near-term default on its obligations. We could lower the ratings if we see deterioration in the bank's liquidity position due to the bank losing access to funding provided by the European liquidity support mechanisms, or if we foresee such support being insufficient to meet the bank's financing needs. Any positive rating action would require increased confidence in the banking system and a significant improvement in the macroeconomic environment, in our view. This would result in the bank becoming less reliant on ECB funding, returning to profitability, and improving its asset quality....

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