Summary: National Bank of Greece S.A.

A solid franchise within the concentrated Greek banking system. Sector-leading problem-loan coverage and loan-to-deposit ratio. Greece's still rather smooth economic recovery compared with the initial shock. Large stock of nonperforming exposures (NPEs). Low quality of capital owing to a high amount of deferred tax assets. Challenges to complete restructuring and strengthen domestic profitability. The stable outlook reflects S&P Global Ratings view that National Bank of Greece S.A.'s (NBG's) improving liquidity and economic conditions in Greece balance still-high systemic risks--notably credit and funding--that will continue to weigh on NBG's creditworthiness over the next 12 months. We could raise the ratings if the macroeconomic environment improves while systemic risks--like funding--decrease and asset quality meaningfully improves. For the latter, we would require NBG

...Outlook: Stable The stable outlook reflects S&P Global Ratings view that National Bank of Greece S.A.'s (NBG's) improving liquidity and economic conditions in Greece balance still-high systemic risks--notably credit and funding--that will continue to weigh on NBG's creditworthiness over the next 12 months. We could raise the ratings if the macroeconomic environment improves while systemic risks--like funding--decrease and asset quality meaningfully improves. For the latter, we would require NBG to considerably reduce its NPEs closer to those of higher-rated peers abroad. At the same time, we would require NBG to preserve adequate coverage through provisions and capitalization. Also, we could raise the ratings if liquidity improves further, which could happen if customer deposits continue returning and NBG gains stable access to unsecured funding. We could lower the ratings if macroeconomic conditions and Greece's relationship with European authorities materially worsened. This could erode...

Summary