S&P Global Ratings on Dec. 14 affirmed the BB+/B long- and short-term issuer credit ratings of Slovenia's Nova Ljubljanska banka d.d. and revised the outlook on the long-term rating to positive from developing.
The rating agency said the outlook revision comes in light of the bank's IPO of 65% of its shares, which were previously owned the by Slovenian government. S&P noted that it expects the government to sell more shares in the lender until its shareholding falls to 25% plus 1 share, as agreed with the European Commission.
The positive outlook reflects the expectation that S&P could raise NLB's long- and short-term rating in the next six to 12 months if industry risk conditions in Slovenia improve.
The ratings also reflect the bank's continued solid profitability in its core markets, ongoing reduction of its nonperforming exposures and the tangible success of its restructuring, the agency added.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.