Moody's may downgrade Eurobank Tekfen

Moody's Investors Service said it placed on review for downgrade the D- bank financial strength rating of Eurobank Tekfen AS, whose corresponding Ba3 stand-alone rating (mapped from the D- BFSR) is six notches higher than that of its parent, EFG Eurobank Ergasias (Caa3, mapped from the E BFSR).

The review follows (i) Moody's assessment that the credit quality of parent banks and their subsidiaries are typically interlinked; and (ii) the potential negative effects on Eurobank Tekfen's balance-sheet evolution, given the parent bank's publicly stated intention to sell its 70% stake in Eurobank Tekfen.

Concurrently, the Ba3 global local-currency deposit rating and the Ba3 foreign-currency deposit rating were also placed on review for downgrade.

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