Late on Friday Moody’s announced that it was upgrading the credit rating of Greece’s four systemic lenders after their successful recapitalization and the prospect for improved funding in the near future.
National Bank, Alpha, Piraeus and Eurobank had their senior unsecured debt rating upgraded by the agency from C to Ca, and the baseline credit rating from Caa3 to Ca, while their deposit rating was affirmed at Caa3, with a stable outlook.
“The upgrade of the Greek banks’ baseline and debt ratings primarily reflects the successful completion of the recapitalization process by all rated banks, which has strengthened their capital metrics, as well as our expectation of modest and gradual improvements in funding,” stated Nondas Nicolaides, a Senior Credit Officer at Moody’s.
“Our ratings balance these improvements in the banks’ credit profiles against the still significant downside risks due to the fragile operating environment in Greece,” added Nicolaides.
Attica Bank also had its baseline credit rating raised from Caa3 to Ca and its long-term deposit rating was affirmed at Caa3.
Moody’s added that it expects only a gradual relaxation of the capital controls in Greece over the next 12-18 months.