The ratings on NBG reflect the bank's dominant position in Greece, strong liquidity, improving loan quality, better core operating income (excluding market-sensitive streams), and its close links with the Hellenic Republic (State), from which the current ratings contain an element of implicit support. Offsetting these positives is NBG's comparatively weak capitalization and net profitability, historically highly vulnerable to market fluctuations. Internationally, Standard&Poor's also remains watchful on NBG's strategy of expansion into the Balkans. With assets totaling €51.9 billion at Sept. 30, 2003, NBG is the largest banking group in Greece and holds a prime position in the country's financial markets, which provides it with stable and inexpensive funding. Although still weak, asset quality is recovering, with little net
