Moody's downgrades National Bank of Greece

Moody's Investors Service said it downgraded National Bank of Greece SA and eight other Greek banks, including EFG Eurobank Ergasias SA, Alpha Bank AE, Piraeus Bank SA, Agricultural Bank of Greece SA, Emporiki Bank of Greece SA, Marfin Egnatia Bank SA and Bank of Attica SA.

The agency downgraded National Bank of Greece's bank financial strength rating to D+ from C-, deposit ratings to Baa2/Prime-2 from A3/Prime-2, senior unsecured debt rating to Baa2 from A3, subordinated debt ratings to Baa3 from Baa1 and preferred stock (hybrid tier 1) to B1 from Ba1. The rating on backed (government-guaranteed) senior unsecured medium-term notes remains unchanged at A3.

The outlook for the bank financial strength rating and preferreds is negative, and the remaining ratings remain on review for possible downgrade.

The agency said the downgrades reflect the banks' weakening stand-alone financial strength and the anticipated additional pressures stemming from the country's challenged economic prospects.

The review for possible downgrade will be concluded at the same time as Moody's ongoing review of Greece's sovereign rating, which serves as a reference point with which to impute bank rating uplift as a result of possible systemic support.

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