Moody’s lowers Eurobank outlook

Ratings agency Moody’s lowered its outlook for Greece’s Eurobank to stable from positive, citing difficult conditions in international capital markets and a weakening credit environment. The outlook change relates to Eurobank’s financial strength and long-term deposit ratings. «According to Moody’s, the ongoing difficult conditions… suggest that Eurobank’s financial fundamentals are unlikely to strengthen sufficiently to warrant a rating upgrade in the immediate future,» it said. «Therefore, the rating outlook is changed to stable from positive.» Eurobank, the country’s second-largest lender, has a market capitalization of 6.12 billion euros. Its shares ended down 1.19 percent yesterday at 11.60 euros, before news of the outlook change was made public. Eurobank’s financial strength rating (BFSR) remains in the C+ category – the highest rating category assigned to Greek banks. «This reflects Eurobank’s dynamic franchise in Greece, complemented by a fast-expanding presence in Central and Southeastern Europe,» Moody’s said. Challenging economic conditions and a weakening credit environment suggest that the likelihood of rating upgrades of Greek banks in general is limited, added the agency.

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