National Bank of Greece S.A.

A solid franchise within the concentrated Greek banking system. Normalizing funding profile with Tier 2 issuance in July. Greece's still rather smooth economic recovery compared with the initial shock. Large stock of nonperforming exposures (NPEs). Low quality of capital owing to a high amount of deferred tax credits. Challenges to complete de-risking and strengthen domestic profitability. The positive outlook indicates we could raise the ratings over the next 12 months if the economic and funding conditions for Greek banks improve, and the bank delivers on its de-risking plan and further improves its liquidity position. We could raise our ratings if the National Bank of Greece (NBG) leverages the improving fundamentals in Greece and delivers on de-risking efforts by further reducing

...(Editor's Note: On Oct. 9, 2020, we republished this report, originally published on Feb. 26, 2020, to correct our ALAC uplift threshold.)...

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