Fitch downgrades several Greek banks

Fitch Ratings said it downgraded the long-term issuer default rating of the National Bank of Greece SA, Piraeus Bank, SA, Eurobank Ergasias SA (Eurobank) and Alpha Bank AE’s long-term issuer default ratings to CCC from B- and viability ratings to CCC from B-.

The ratings on the four banks also were removed from Rating Watch negative, Fitch said.

The actions follow the downgrade of Greece’s sovereign rating March 27, the agency said, and reflect Greece’s weaker economic prospects, which put the banks’ asset quality and solvency at further material risk.

The downgrades also consider pressures on funding and liquidity as deposit outflows are expected to continue until a compromise deal between Greece and its creditors is reached, Fitch said.

The ratings also reflect a view that failure risk at these banks is a real possibility given funding, liquidity and solvency pressures in the context of the exceptionally challenging domestic operating environment, with potential further deterioration in loan quality, as well as direct exposure to the weakened Greek sovereign, the agency said.

National Bank of Greece’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B and viability rating to CCC from B-. Its senior notes were downgraded to CCC with a recovery rating of RR4 from B- with a recovery rating of RR4, short-term senior notes to C from B and state-guaranteed debt to CCC from B. Piraeus Bank’s hybrid capital rating was affirmed at C with recovery rating of RR6.

NBG Finance plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4 and its short-term senior unsecured debt rating to C from B.

Piraeus Bank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, long-term senior unsecured debt rating to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and commercial-paper rating to C from B.

Piraeus Group Finance plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4 and short-term senior unsecured debt rating to C from B.

Alpha Bank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, long-term senior unsecured debt rating to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and market-linked senior notes to CCCemr with recovery rating of RR4 from B-emr with recovery rating of RR4. Its hybrid capital was affirmed at C with recovery rating of RR6.

Alpha Credit Group plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and subordinated notes to C with recovery rating of RR6 from CC with recovery rating of RR6.

Eurobank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, senior notes to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior notes: to C from B, market-linked senior notes to CCCemr with recovery rating of RR4 from B-emr with recovery rating of RR4, commercial-paper rating to C from B, subordinated notes to C with recovery rating of RR6 from CC with recovery rating of RR6, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B. Its hybrid capital was affirmed at C with recovery rating of RR6.

ERB Hellas plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B.

ERB Hellas (Cayman Islands) Ltd.’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B.

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