Fitch affirms Nova Ljubljanska Banka

Fitch Ratings said it affirmed Slovenia-based Nova Ljubljanska Banka's A- issuer default rating, F2 short-term rating, 1 support rating and C individual rating. The outlook is stable.

The affirmation follows the statement issued by the Belgian KBC Bank, a shareholder in Nova Ljubljanska Banka, that its responsibility in the bank will be limited to that of a pure financial investor until further notice. This statement follows KBC Bank's failure to obtain an agreement for it to gain a majority stake in Nova Ljubljanska Banka.

The ratings are based primarily on Fitch's view of the extremely high potential support that would be provided to the bank from the Slovenian State should it be required because of the bank's partial state ownership and its dominant position in the market. KBC Bank's statement in no way reduces this support, the agency said.

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