We have now reviewed our 'BB' rating on Nova Ljublanjanska Banka (NLB), which we placed under criteria observation (UCO) on July 28 while we reviewed the effect of changes to economic and industry risk proxies for some southeastern European (SEE) markets under our revised risk-adjusted capital framework methodology. Our view of higher economic risk in (SEE) markets, where NLB has about 35% of its loan exposure, has a negative impact on our overall assessment of the group's risk from the economic environment. However, we consider that NLB's risk profile now compares well with that of international peers operating with similar economic risks. We are therefore affirming our 'BB/B' ratings on NLB and removing the UCO designation from the 'BB' long-term
