ECONOMY

S&P raises rating of Alpha and Eurobank

s-amp-038-p-raises-rating-of-alpha-and-eurobank

Standard & Poor’s on Friday raised its rating on Greece’s Alpha Bank and Eurobank to SD (selective default) from D (default) after the two banks successfully raised funds to plug capital shortfalls revealed in a European Central Bank stress test.

“We understand the banks will not require financial support from the Hellenic Financial Stability Fund (HFSF) to meet their regulatory capital requirements,” the ratings agency said.

Alpha and Eurobank were two of Greece’s four big banks that managed to cover their capital holes without resorting to state aid.

On Thursday Alpha and Eurobank secured European Union regulatory approval for minor changes to their restructuring schemes after they managed to plug their capital shortfall without further state aid.

The two banks had to downsize their operations and reinforced their balance sheets last year in return for EU regulatory clearance for their billion-euro state bailouts.

[Reuters]