The ratings on National Bank of Greece S.A. (NBG) reflect its dominant and important position in the Greek financial markets, its strong liquidity, and its healthier loan quality. NBG also enjoys close links with the state, and despite the present government's policy of an independent banking sector, the current ratings contain an element of implicit state support. Offsetting these positives is its risk profile, which has made performance and capital highly vulnerable to market fluctuations. With assets totaling €55 billion at Dec. 31, 2002, NBG is the largest banking group in Greece and holds a prime position in the country's financial markets, including a share of customer deposits of about 30%, which provides it with stable and inexpensive funding. Internationally,
