Moody’s sees positive outlook for Piraeus Bank
Moody’s said on Tuesday that Piraeus Bank’s outlook is positive, reflecting expectations of an improvement in the systemic lender’s fundamentals in the next 12 to 18 months, after the completion of its restructuring plan.
In its update to investors, the agency gave Piraeus a Caa2 rating, which reflects the challenge the bank is facing in the reduction of its nonperforming exposures.
NPEs accounted for 52.1 percent of Piraeus’ loans in March, amid a gradual improvement of financial conditions in Greece, Moody’s said, adding that the bank’s prospects for further improvement in its financing, the quality of its assets and its profits are likely to have a favorable impact in its next rating assessment.
Piraeus is seen as able to return to sustainable profits in 2019-20, putting an end to a period of capital reduction; however, the failure of efforts to reduce its bad loans in 2019 and 2020 or a deterioration in the general economic environment could lead to a credit rating downgrading, Moody’s warned.
