According to S&P, the improved rating is based on a stable rate of economic growth, fast reduction of the volume of non-performing loans and improved creditworthiness.

All this improves the bank's ability to generate revenue and supports the further transformation of the bank, the credit rating agency added.

It also pointed to the improved liquidity of the country's largest bank, which is based on strong retail banking operations and represents a stable and diversified source of deposits.

Earlier in the day, the NLB group said it had generated a net profit EUR 81.6m in the first quarter of 2017, which was EUR 29.4m or 56% more than in the same period last year.