Research Update: Slovenia-Based Nova Ljubljanska Banka Outlook Revised To Positive On Partial Privatization And Strong Performance

In November 2018, the government of Slovenia sold 65% of its shares in Nova Ljubljanska Banka d.d. (NLB) via an IPO, easing pressure of negative intervention by the European Commission and risks of disruptive measures to NLB's operations. Ongoing improvement of economic prospects and banking industry conditions in the bank's core operating regions continue to support NLB's financial and risk profile. We are therefore revising our outlook to positive from developing, and affirming our 'BB+/B' long- and short-term issuer credit ratings on NLB. The positive outlook indicates that we could raise our ratings on NLB in the next 6-12 months, if industry risk conditions in Slovenia improve, or if the bank's standalone creditworthiness improves. On Dec. 14, 2018, S&P Global

...+ In November 2018, the government of Slovenia sold 65% of its shares in Nova Ljubljanska Banka d.d. (NLB) via an IPO, easing pressure of negative intervention by the European Commission and risks of disruptive measures to NLB's operations. + Ongoing improvement of economic prospects and banking industry conditions in the bank's core operating regions continue to support NLB's financial and risk profile. + We are therefore revising our outlook to positive from developing, and affirming our '##+/B' long- and short-term issuer credit ratings on NLB. + The positive outlook indicates that we could raise our ratings on NLB in the next 6-12 months, if industry risk conditions in Slovenia improve, or if the bank's standalone creditworthiness improves....

Research Update