Moody's rates Nova Ljubljanska

Moody's Investors Service said it has rated at A3 Nova Ljubljanska banka's (NLB) upcoming €50 million floating-rate subordinated step-up notes maturing in 2014, which will be privately placed with institutional investors.

The outlook is stable.

Moody's said that the rating takes into account the bank's dominant position and strong franchise in the Slovenian market, as reflected by NLB's existing C financial strength rating and A2/P-1 foreign currency long- and short-term deposit ratings.

NLB's leading market share of around 39% in the Slovenian banking system provides the bank with an adequate earnings protection, while its regional expansion accompanied by the 34% shareholding of the bank by Belgium's KBC banking group is likely to add further value going forward.

Moody's said the senior ratings assigned also impute an element of government support given NLB's importance to the financial system in Slovenia, as well as the government's 35.7% direct stake in the bank.

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