ECONOMY

Moody?s downgrades Greek banks; outlook negative

Ratings agency Moody’s downgraded on Wednesday six Greek banks after slashing the country’s sovereign rating by three-notches earlier this week.

The action affects the deposit and debt ratings of National Bank (NBG), Eurobank EFG, Alpha Bank, Piraeus Bank, ATEbank and Attica Bank.

Moody’s downgraded NBG to Ba3 from Ba1, Eurobank to Ba3 from Ba1, Alpha Bank to Ba3 from Ba1, Piraeus Bank to Ba3 from Ba1, ATEbank to B1 from Ba2, and Attica Bank to B1 from Ba2.

It said the outlook on all these ratings is negative.

Explaining the rationale for the action, Moody’s said a government’s credit strength serves as a key input in assessing the capacity of a country to support its banking system

On Monday, Moody’s downgraded Greece’s debt rating amid worries that the country will end up having to restructure its massive debts.

In early trade on the Athens bourse, banks were up 2.61 percent after slumping more than six percent on Tuesday. The broader market was up 1.04 percent.