Fitch might cut four Greek banks

Fitch Ratings said it placed Greece-based National Bank of Greece SA, Piraeus Bank, SA, Alpha Bank AE and Eurobank Ergasias SA's long-term issuer default ratings of B- and viability ratings of b- on Rating Watch Negative.

The banks' short-term issuer default ratings of B were also placed on Rating Watch Negative.

Fitch said the negative watch reflects downside rating potential due to rising funding and liquidity risks, as Fitch assumes that the negotiations between the Greek government and its official creditors will be very challenging.

In the agency’s view, this will likely translate into continued deposit outflows for Greek banks that could potentially trigger imposition of capital controls, in particular if access to emergency funding was at any time restricted by the European Central Bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.