Gorenjska banka d.d. (GB) is a well-established, small, and regional universal bank operating in Slovenia with minimal exposures to neighboring countries. Key credit drivers are its strong capitalization and solid earnings generation capacity, in our view. Its small size, focus on small and midsize enterprises (SMEs), and its large consumer finance book through its market-leading car leasing franchise make it more vulnerable to economic swings than larger banks in Slovenia. That said, its current portfolio shows robust risk performance. The bank has a solid deposit franchise benefitting from high market shares of clients in its core region, Gorenjska. Like other banks in the country, its excess liquidity buffers make it resilient to adverse financial markets. We assigned our 'BB+' long-term
