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S&P upgrades NLB’s credit rating to BBB+

Rating agency Standard and Poor’s raised NLB’s long-term issuer credit rating by one notch to BBB+ from BBB with stable outlook, based on financial outperformance and strong strategic execution. “The upgrade reflects our view that NLB outperforms peer banks with a ‘bbb-’ stand-alone credit profile (SACP) thanks to its persistent strong financial performance and the leading deposit franchise in its core markets,” noted the agency.

Citing reasons for upgrading NLB’s credit rating, Standard and Poor’s listed NLB’s commitment to Strategy 2030, which foresees expansion in SEE, business model diversification, and the upgrade of operating model, aimed to double balance sheet and after-tax profits by 2030. 

 

The stable outlook reflects agency’s view that NLB will maintain a robust balance sheet and solid financial performance over the next 12-24 months while continuing to deliver on Strategy. “Despite high balance sheet growth in recent years, NLB maintained sound capitalization and its solid funding franchise” wrote Standard and Poor’s.

 

 

This upgrade by S&P represents a strong external endorsement of NLB’s consistent execution and strategic focus as the regional and domestic banking champion over the past few years and has brought us closer to the rating of our home sovereign (Republic of Slovenia, rated AA). It reflects the Group’s solid and sustained profitability, prudent risk management, and proactive efforts to strengthening the balance sheet and funding structure. NLB maintains proactive dialogues with all major rating agencies as part of our ongoing efforts to improve our ratings, in line with the Group’s ambitious growth plans and related capital market funding needs.
Archibald Kremser, NLB’s CFO

NLB Communications

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