Moody’s: NBG bond amendment has no impact on rating

Moody’s announced on Friday there is no rating impact on National Bank of Greece’s covered bonds following an amendment to the bond transaction documents.

The amendment will allow bondholders of any series to sell a pro rata share of the cover pool after the issuer has defaulted or following an extension of the relevant series.

In case the sale proceeds are not sufficient to completely redeem the relevant series, the remaining assets will exclusively back the other series, and the bondholders which opted for a sale have no claim on these assets backing the other series.

Moody’s has determined that the amendment, in and of itself and at this time, will not result in the downgrade or withdrawal of the ratings currently assigned to the covered bonds.

However, Moody’s opinion addresses only the credit impact associated with the proposed amendment, and Moody’s is not expressing any opinion as to whether the amendment has, or could have, other non-credit related effects that may have a detrimental impact on the interests of note holders and/or counterparties.