We expect an at least one in three chance that Slovenia-based Nova Ljubljanska Banka D.D. (NLB) will gradually increase its additional loss-absorbing capacity (ALAC) through the issuance of senior nonpreferred or Tier 2 instruments, approaching 8% of S&P Global Ratings' risk-weighted assets (RWAs) over the next two years, up from 3.7% as of end-2025. Therefore, we consider it could become eligible for a two-notch ALAC uplift. NLB has been delivering a track record of good profitability, while expanding its operations and becoming increasingly relevant with benchmark issues in the capital markets, diversifying its investor base. Therefore, we revised our outlook on our ratings on Nova Ljubljanska Banka D.D. to positive from stable and affirmed our long- and short-term issuer credit
