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Bank Industry Risk Analysis: Slovenia (Republic of)
Standard & Poors, Jan 2006
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
Abstract
Prosperous and stable operating environment; Current problem-loan levels adequate compared with peers'; Good retail savings culture supports funding; and Sufficient current capital flexibility. Competitive dynamics limited by the two largest players; High cost base moderates profitability; Asset quality sensitive to external markets, given exporter dominance; and Modernization of risk management requires impetus. The economic and industry risks pertaining to the Republic of Slovenia's (AA-/Stable/A-1+) banking sector remain moderate. This reflects the benefits of operating in a wealthy but small economy, supporting good savings and funding levels, adequate profitability and capitalization, and stable asset quality. The system is concentrated, thereby subduing competition and limiting innovation and restructuring. The creditworthiness of the banking sector is expected to remain broadly stable given the...
Companies mentioned in this report are: Societe Generale,Raiffeisen Zentralbank Oesterreich AG,Slovenia (Republic of),Nova Kreditna Banka Maribor d.d. (Unsolicited Ratings),KBC Group N.V.
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