NLB's asset quality has been broadly resilient despite the challenging macroeconomic environment in recent years, with the ratio of problem loans to gross loans at 2.2% as of September 2023. The upgrade of the bank's BCA and Adjusted BCA to baa3 from ba1 is driven by the improvement in the bank's solvency, mainly in terms of asset quality and profitability, and a sustained sound liquidity profile, while also incorporating the agency's view of some remaining tail-risks for the group related to significant exposures in economically, institutionally and politically less stable countries than its home market Slovenia. The outlook on the long-term deposit ratings remains stable, Moody's said.
The rating agency has affirmed the bank's A3/P-2 long- and short-term Counterparty Risk Ratings (CRR) and its A3(cr)/P-2(cr) long- and short-term counterparty risk assessments, Moody's said in a statement. LJUBLJANA (Slovenia), December 7 (SeeNews) - Moody's Investors Service has affirmed the A3/P-2 long- and short-term deposit ratings of Slovenian lender Nova Ljubljanska Banka (NLB) and upgraded the bank's baseline credit assessment (BCA) to baa3 from ba1, Moody's said on Thursday.
