Economic risk prospects and banking industry risk in Slovenia have improved, contributing to a turnaround in the Slovenian banking sector. Nova Ljubljanska Banka's (NLB's) recent years' restructuring, revised lending standards, and resolution of legacy problems have resulted in an improved risk position, and we have therefore revised our risk position assessment on the bank to moderate from weak. NLB's improved intrinsic creditworthiness is now reflected in its stand-alone credit profile, so we removed our one-notch transitionary adjustment. We are revising our outlook on NLB to positive from stable and affirming the 'BB-/B' long- and short-term counterparty credit ratings. The positive outlook reflects the likely upside to the rating if the improved domestic economic conditions and further restructuring support improved asset
