The ratings on National Bank of Greece S.A. (NBG) reflect the bank's dominant position in the Greek financial system, strong funding profile, and close links with the state (Hellenic Republic; A/Stable/A-1). Offsetting these positives is NBG's track record of volatile performance in the past few years (including weak U.S. GAAP-based returns in the 2001-2003 period), tight core capitalization, and, a still-high stock of nonperforming loans. The largest financial institution in Greece, NBG holds a prime position in the country's financial markets. It enjoys a strong franchise and brand name, as well as a large and loyal customer base, which, in addition to offering attractive growth opportunities, provides the bank with an enormous competitive advantage in terms of funding. Controlling almost
