Fitch drops Nova Kreditna

Fitch Ratings said it downgraded Nova Kreditna Banka Maribor's long-term issuer default rating to BBB+ from A-.

The ratings also were removed from Rating Watch negative.

The outlook is stable.

The downgrade reflects a moderate downward revision in the agency's assessment of the probability of future support being made available to from the Slovenian authorities, Fitch said.

This follows the dilution of the government's direct stake in the bank to about 28% from 41% following the bank's recent equity issue, the agency said.

While Fitch said it recognizes that the ultimate level of state ownership in the bank has been maintained at about 51%, the government's delayed and only indirect participation in the capital increase constitute key factors in the downgrade.

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