Slovenia-Based Nova Ljubljanska Banka Affirmed At 'BB-/B' On Subsiding Industry Risk; Outlook Remains Negative

In our view, industry risks for banks in Slovenia have reduced, as banks lowered debt and increased the share of deposit funding over the past few years, and we consider the trend to be stable. Although we see a positive economic risk trend in Slovenia, with reducing credit losses, Nova Ljubljanska Banka's (NLB's) weak financial profile remains under pressure from high problem loans. We are affirming our 'BB-/B' ratings on the bank. The negative outlook indicates the possibility of a downgrade if NLB's financial profile weakens or government support for banks becomes less predictable after the EU's bank resolution directive takes effect in 2016. LONDON (Standard&Poor's) April 2, 2015--Standard&Poor's Ratings Services said today that it had

...(Editor's Note: We republished this media release on April 6, 2015, to correct the economic risk trend in the From column of the BICRA Score Snapshot to stable from negative. ) + In our view, industry risks for banks in Slovenia have reduced, as banks lowered debt and increased the share of deposit funding over the past few years, and we consider the trend to be stable. + Although we see a positive economic risk trend in Slovenia, with reducing credit losses, Nova Ljubljanska Banka's (NLB's) weak financial profile remains under pressure from high problem loans. + We are affirming our '##-/B' ratings on the bank. + The negative outlook indicates the possibility of a downgrade if NLB's financial profile weakens or government support for banks becomes less predictable after the EU's bank resolution directive takes effect in 2016. LONDON (Standard & Poor's) April 2, 2015--Standard & Poor's Ratings Services said today that it had affirmed its '##-' long-term and 'B' short-term counterparty credit...

Ratings Action