We believe National Bank of Greece's (NBG's) liquidity has weakened significantly over the past few weeks due to large deposit outflows and the lack of access to capital markets. In our view, these factors have forced NBG to increase its reliance on European Central Bank (ECB) funding, and we expect the bank will likely need to rely on extraordinary liquidity support measures going forward. We are placing our 'CCC+' long-term rating on NBG on CreditWatch with negative implications. At the same time, we are lowering our rating on the bank's nondeferrable subordinated debt to 'C' from 'CC', and affirming our 'C' short-term rating. The CreditWatch placement reflects the possibility that we could lower the long-term rating on NBG if we
