The ratings on National Bank of Greece S.A. (NBG) reflect the bank's size, its dominant and important position in the Greek financial markets, its strong liquidity, and improving asset quality. These positives are somewhat offset by the declining trend observed in both profitability and core capital levels. With assets totaling €55 billion at Dec. 31, 2001, NBG is the largest bank in Greece and holds a prime position in the country's financial markets, with a share of customer deposits of about 30%, and 21% of total lending. A proposed merger between NBG and Alpha Bank A.E. (BBB+/Negative/A-2), the second-largest bank in Greece that was initiated in late 2001, collapsed in January 2002, due to disagreements between the senior management of
