Dominant market position in the Greek financial market. Universal banking profile with improved geographic diversification. Enhanced core capitalization. Heightened economic and industry risks in its home market posed by developments in sovereign creditworthiness of country of domicile. Higher credit risk than Western European peers. Increased funding imbalances with high reliance on European Central Bank. Weakening profitability and asset quality. The ratings on the National Bank of Greece S.A. (NBG) reflect heightened economic and industry risks in its home banking market posed by developments in the sovereign creditworthiness of NBG's country of domicile (Hellenic Republic; BB+/Negative/B). They also reflect Standard&Poor's Ratings Services view of NBG's dominant position in Greece's financial system, its increased geographic diversification, and enhanced capitalization. The
