In our view, credit risk has reduced for Slovenia-based Nova Ljubljanska Banka (NLB) following a restructuring and ongoing workout of problem loans. We anticipate that NLB will follow a conservative lending policy and benefit from the gradual economic recovery. This has led us to revise the bank's stand-alone credit profile (SACP) upward to 'b+' from 'b'. However, this improvement is balanced, in our view, by the transition towards less predictable systemic support for banks in Slovenia, including NLB. We are therefore affirming our 'BB-/B' ratings on the bank. The negative outlook reflects the lower predictability of government support for banks after the EU's bank resolution directive takes effect in 2016. On May 12, 2015, Standard&Poor's Ratings Services affirmed
