ECONOMY

Moody’s downgrades five Greek banks

The uncertain outcome of Greece’s standoff with its creditors prompted Moody’s Investors Service to downgrade the ratings on five lenders, citing the reduced likelihood of state support, and said it may cut again.

New York-based Moody’s reduced National, Piraeus and Alpha one level to Caa2 from Caa1, it said in a statement on Monday.

It also lowered Eurobank and Attica Bank to Caa3 from Caa2.

Moody’s said it plans to assess “the acute funding and liquidity pressures facing these banks,” as well as their exposure to the sovereign.

It will also look at the impact of the “weakened operating environment” on their asset quality and their solvency, it said.

[Bloomberg]