...- Nova Ljubljanska Banka (NLB) and its subsidiaries are making progress in strengthening their additional loss-absorbing capacity (ALAC) buffers, which provide protection to senior creditors in a resolution scenario. - The bank's plan to build-up ALAC buffers much faster than initially expected is credible, in our view, considering its intention to meet its bail-in targets by issuing sufficient subordinated debt instruments by 2024. - In our view, NLB is effectively operating under a multiple point of entry strategy, implying that the Slovenian resolution group would enter a separate resolution path from the rest of the group, in the unlikely scenario of nonviability. - We therefore upgraded the issuer credit ratings on NLB to '###/A-2' from '###-/A-3' and the resolution counterparty ratings to '###+/A-2' from '###/A-2'. The outlook is stable. - The stable outlook reflects our expectation that NLB will maintain sufficiently high bail-in-able buffers in the next 12-24 months, particularly...
