Fitch upgrades Greek banks’ viability ratings

21 June 2017
345 Views

Fitch credit ratings agency has upgraded the Greek banks in light of the recent deal at the EuroGroup and the completion of the second review. Fitch has affirmed the Long-Term Issuer Default Ratings (IDRs) of National Bank of Greece S.A. (NBG), Alpha Bank AE (Alpha), Piraeus Bank S.A. (Piraeus) and Eurobank Ergasias S.A. (Eurobank) at ‘Restricted Default’ (RD). At the same time the agency has upgraded the four Greek banks’ Viability Ratings (VRs) to ‘ccc’ from ‘f’. The upgrade of the VRs reflects the banks’ improved liquidity and Fitch’s expectation that the completion of the second review of Greece’s third economic adjustment programme reduces political risks and will strengthen depositor and investor confidence in the Greek banking system. The banks’ IDRs of ‘RD’ reflect Fitch’s view that the Greek banks are defaulting on a material part of their senior obligations given that capital controls, through restrictions on deposit withdrawals, are still in place in Greece. Full lifting of capital controls is unlikely in the short term in Fitch’s view, but the agency expect gradual steps towards capital controls relaxation and in particular, gradual removal of restrictions on deposit withdrawals.

You may be interested

US Amb Pyatt: The stronger Greece is, the more it can act as a stabilizing force in the region
GREECE
shares20 views
GREECE
shares20 views

US Amb Pyatt: The stronger Greece is, the more it can act as a stabilizing force in the region

makis - Apr 20, 2018

Greece can act as a stabilizing force for good in the wider region and the stronger Greece is, the better…

Kotzias – Dimitrov to meet again on April 25, in Vienna
POLITICS
shares21 views
POLITICS
shares21 views

Kotzias – Dimitrov to meet again on April 25, in Vienna

makis - Apr 20, 2018

According to the FYROM government spokesman, Mile Bosnjakovski who spoke on Friday, there will be a new meeting between the…

Alexandros Stamatiadis dies in hospital
GREECE
shares38 views
GREECE
shares38 views

Alexandros Stamatiadis dies in hospital

makis - Apr 20, 2018

Greek businessman Alexandros Stamatiadis has died after being hospitalised in critical condition for 18 days. The businessman, 52, was shot…

Leave a Comment

Your email address will not be published.