The ratings on National Bank of Greece S.A. (NBG) reflect the bank's dominant position in Greece, strong liquidity, and close links with the Hellenic Republic, from which the current ratings contain an element of implicit support. Offsetting these positives are NBG's comparatively weak asset quality, profitability (albeit improving), and capitalization. Internationally, Standard&Poor's also remains watchful on NBG's strategy of expansion into the Balkans. With assets totalling €52.1 billion at March 31, 2004, NBG is the largest banking group in Greece. It enjoys a leading position controlling 33% of the system's deposits and 21% of loans. It also runs the largest and most widespread branch network in Greece, which provides the group with stable and inexpensive funding. The Greek
