Fitch raises Greek banks

Fitch Ratings said it upgraded National Bank of Greece SA's and Eurobank SA's long-term senior preferred debt rating to B-/RR4 from CCC/RR6. The agency also raised Piraeus Bank SA's -term SP debt rating to CCC/RR5 from CCC-/RR6. SP debt instruments can be issued under the three banks' debt issuance programs.

“The upgrade reflects Fitch's assessment that recoveries for the banks' SP creditors have improved because of subdued asset-quality risks, following a recovery in the Greek operating environment and progress made in their respective de-risking plans, including the sale of substantial portfolios of non-performing exposures (NPE),” Fitch said in a press release.

Additionally, Fitch said the recent disclosure of banks' minimum requirements for own funds and eligible liabilities will underpin the build-up of larger resolution debt buffers and increase the protection that could accrue to SP creditors in a default scenario.

The banks’ other ratings are unchanged by the action, the agency said.

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