Economic conditions remain difficult, but Nova Ljubljanska Banka (NLB) continues demonstrating resilient business and earnings performance in its core markets. NLB's resiliency in our view is thanks to its significant progress in recent years of strengthening its risk management and business operations, and reducing residual balance sheet risks. We have therefore revised our outlook on NLB to stable from negative and affirmed the 'BBB-/A-3' ratings. The stable outlook reflects our expectation that NLB will continue to weather difficult markets, thanks to relatively resilient earnings and asset quality performance, and that it will smoothly integrate its large Serbian acquisition. On May 26, 2021, S&P Global Ratings revised to stable from negative its outlook on Slovenia-based Nova Ljubljanska Banka D.D. (NLB). At
