Market leading position in Slovenia. Continued de-risking of loan book reflecting success of the bank's restructuring. Self-funded deposit base in Slovenia and foreign core markets, with strong liquidity buffers. Somewhat aggressive dividend-payout policy that hampers capital buildup. Remaining tail risks in its legacy nonperforming portfolio. Some litigation risks and single-name concentration toward home sovereign debt securities. S&P Global Ratings' outlook on Slovenia-based Nova Ljubljanska Banka (NLB) is stable. This mirrors our view of a benign economic and industry risk environment in Slovenia and South Eastern Europe (SEE) over the next 24 months. Our base-case considers that NLB will continue improving asset quality by reducing its nonperforming loan (NPL) book, while we expect that the bank will maintain a risk-adjusted capital
