Fitch Rates Nova Ljubljanska Banka's Upcoming Bond Issue

Wed Jun 18, 2014 9:58am EDT

Related Topics

(The following statement was released by the rating agency) LONDON, June 18 (Fitch) Fitch Ratings has assigned Nova Ljubljanska Banka d.d.'s (NLB; BB-/Negative) upcoming senior unsecured notes an expected Long-term rating of 'BB-(EXP)'. KEY RATING DRIVERS The issue's expected Long-term rating is in line with NLB's 'BB-' Long-term foreign currency Issuer Default Rating (IDR). NLB's Long-term foreign currency IDR is currently at its Support Rating Floor (SRF), reflecting what Fitch views as a moderate probability that the Slovenian state would support the bank if required. NLB plans to issue a senior unsecured bond, using the proceeds for general funding purposes. RATING SENSITIVITIES The bond's expected rating is sensitive to changes in NLB's SRF. The Negative Outlook on the bank's Long-term IDR reflects Fitch's expectation that progress will be made in implementing the legislative and practical aspects of enabling effective bank resolution frameworks within the European Union. As a result, Fitch expects to revise NLB's SRF downwards within the next one to two years due to the likelihood of diminished implicit sovereign support. This would in turn lead to a downgrade of NLB's Long-term IDR, and as a result the bond rating, to the level of the bank's Viability Rating at that time (for more information see 'Fitch Revises Outlooks on 18 EU Commercial Banks to Negative on Weakening Support' at www.fitchratings.com) NLB's VR was upgraded to 'b-'/RWP on 23 December 2013 (see 'Fitch Upgrades VRs of 3 Slovenian Banks; on Watch Positive' at www.fitchratings.com) following the bank's recapitalisation by the Slovenian authorities. Fitch will assess the extent of any potential upgrade of NLB's VR, and expects to resolve the RWP early in 3Q14. Contact: Primary Analyst Lindsey Liddell Director +44 20 3530 1008 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Michal Bryks Director +48 22 338 6293 Committee Chairperson James Watson Managing Director +7 495 956 9901 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, Global Financial Institutions Rating Criteria, dated 31 January 2014 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.