The ratings on National Bank of Greece S.A. (NBG) reflect its dominant position in Greece's financial system, increased geographic diversification, sound funding profile and strengthened 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, and high exposure to the riskier Turkish market (through subsidiary Finansbank). 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 involved a
