The ratings reflect National Bank of Greece S.A.'s (NBG) dominant position in Greece's financial system, increased geographic diversification, strong funding profile and profitability, and successful strategy implementation. They also take into account the Greek state's (Hellenic Republic; A/Stable/A-1) indirect shareholding. Offsetting these credit strengths are NBG's greater credit risk than the European average, high exposure to the riskier Turkish market (through subsidiary Finansbank), and tolerance for tight capital levels. NBG enjoys a strong franchise and brand name. It services a large, loyal, and underpenetrated customer base, which offers attractive growth opportunities and gives the bank an enormous competitive advantage in funding. NBG has experienced a significant transformation over the past few years. The successful execution of its business plan (which
