Moody’s lowers five Greek banks

Moody's Investors Service said it downgraded the long-term deposit and senior debt ratings of five Greek banks: Piraeus Bank SA to Caa2 from Caa1, National Bank of Greece SA to Caa2 from Caa1, Alpha Bank AE to Caa2 from Caa1, Eurobank Ergasias SA to Caa3 from Caa2 and Attica Bank SA to Caa3 from Caa2.

All ratings were placed on review for further downgrade.

The rating actions follow Moody's Feb. 6 decision to place Greece's Caa1 sovereign rating on review for downgrade

The agency said the downgrades are driven by its view of a reduced likelihood of systemic support given (a) the heightened uncertainty about the government's ability to come to an agreement with official creditors in time to meet its own liquidity and funding needs; and (b) the likely reduction in the Hellenic Financial Stability Fund's (HFSF) capacity to support the banks in case of need.

Moody’s said the review will assess the acute funding and liquidity pressures facing these banks and the banks' direct exposure to the sovereign and the impact of the weakened operating environment on asset quality and solvency.

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