According to Slovenia's largest bank, the agency said NLB's financial situation improved significantly between last year and the first quarter of this year due to a small number of new bad loans, the bank's higher profitability and strong liquidity.

Fitch said NLB's loan portfolio remained stable in the last six months at BB+, while the potential risks that could cause additional costs or operative restraints to the bank have significantly lowered after the privatisation earlier this month.

Fitch decided to scrutinise NLB's rating at the end of April and announced in October it would improve its rating by one notch if the bank was privatised by the end of the year. Otherwise the bank's standing, profitability, capital, and the rating could worsen, it warned.

In line with a decision on changed commitments taken by the European Commission last August, Slovenia had to sell at least 50% plus one share of the bank by the end of 2018 and the remaining 25% plus one share by the end of 2019.

In early November, the state sold 65% of the bank, while the remaining 10% is to be sold by the end of next year.

Thus the bank has only a few compensation measures left to implement to meet the demands of the European Commission in exchange for the state aid it received at the end of 2013 and for putting off the privatisation.