On April 16, 2014, National Bank of Greece (NBG) announced its intention to raise up to €2.5 billion in new capital. We do not anticipate that the capital increase will create a sufficient cushion to cover the impact that high credit losses we expect to see from the bank's large and increasing stock of nonperforming and restructured assets are likely to have on the bank's solvency. That said, we expect the Hellenic Financial Stability Fund to be willing and able to provide capital support to NBG. We are therefore affirming our 'CCC/C' long- and short-term ratings on NBG. The negative outlook reflects the possibility that we could downgrade NBG over the next 18-24 months if we believed it was going
