Nova Ljubljanska Banka Upgraded To 'BB+' On Reduced Economic Risk In Slovenia; Outlook Developing

OVERVIEW In our view, Slovenia's strong economic growth, alongside steady corporate sector deleveraging and a continued decline of nonperforming loans, limits credit risks for local banks, including Nova Ljubljanska Banka (NLB). In particular, this supports NLB's earnings generation capacity and further derisking of its loan portfolio. We continue to view NLB's capital and risk profile as a neutral rating factor, given the continued reduction of nonperforming assets and healthy loan recoveries. We are raising our long-term rating on NLB to 'BB+' from 'BB' and affirming the 'B' short-term rating. The developing outlook indicates that we could affirm, raise, or lower our ratings on NLB in the next 6-12 months, depending on a smooth privatization of the bank. FRANKFURT (S&P Global

...OVERVIEW + In our view, Slovenia's strong economic growth, alongside steady corporate sector deleveraging and a continued decline of nonperforming loans, limits credit risks for local banks, including Nova Ljubljanska Banka (NLB). + In particular, this supports NLB's earnings generation capacity and further derisking of its loan portfolio. + We continue to view NLB's capital and risk profile as a neutral rating factor, given the continued reduction of nonperforming assets and healthy loan recoveries. + We are raising our long-term rating on NLB to '##+' from '##' and affirming the 'B' short-term rating. + The developing outlook indicates that we could affirm, raise, or lower our ratings on NLB in the next 6-12 months, depending on a smooth privatization of the bank. FRANKFURT (S&P Global Ratings) May 18, 2018--S&P Global Ratings said today that it has raised its long-term issuer credit rating on Slovenian-government-owned Nova Ljubljanska Banka D.D. (NLB) to '##+' from '##'. The outlook...

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