Moody’s: the solvency downgrades five Greek banks

Moody’s: the solvency downgrades five Greek banks

Athens, February 10, 2015/ Independent Balkan News Agency

By Spiros Sideris

A deterioration of creditworthiness five Greek banks have gone the firm Moody’s today’s announcement, as AMNA reports, after the announcement last Friday, which puts the solvency of Greece (Caa1) under review for possible downgrade.

The Moody’s downgraded the ratings of Piraeus Bank, National Bank and Alpha Bank to step Caa2 from Caa1, while also downgraded the solvency of Eurobank and Attica Vank to Caa3 from Caa2. All ratings were placed under review for further downgrade.

The new ratings of Moody’s are guided, as the rating agency reports in view that there is a reduced probability of systemic support, given that:

  1. a) The increased uncertainty about the ability of the government to reach an agreement with the official creditors on time to meet the liquidity needs and financial needs, and b) the possible restriction of the Financial Stability Fund (FSF) to bailed out in an emergency.