By Simon Miller

Fitch Ratings has affirmed the junk status of four of the largest Greek banks and removed the negative watch rating.

National Bank of Greece, Alpha Bank, EFG Eurobank Ergasias and Piraeus Bank were affirmed at "B-" a 'stable' rating which means the banks will not be downgraded in the short-term.

The actions follow the upgrade of Greece's sovereign rating to 'B-' from 'Restricted Default' and Fitch's revised judgement of external support for Greek banks' recapitalisation following the new private sector involvement (PSI Plus) debt exchange agreed in early March 2012.

"NBG's, Alpha's, Eurobank's and Piraeus' Long-term IDRs are on their Support Rating Floors and reflect Fitch's assumption that support from the IMF/EU in respect of Greek banks' recapitalisation is committed and ensured after Greece's debt restructuring and on the basis that they are viewed as viable banks," said Fitch.

The ratings agency added: "Fitch also believes the Bank of Greece and the ECB will continue to provide emergency liquidity assistance in a timely manner, as evidenced in the past weeks when Greece was downgraded to 'RD' and Greek government bonds lost their eligibility for ECB funding."

Home     More News

Financial Risks Today Beta Banner

Other stories you may find of interest:

A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership

Fencing off the risk?
The Independent Commission on banking has set the cat among the pigeons with the recommendation to ring-fence retail operations. Simon Miller looks at how this came about and what unintended consequences could arise

Impacting on investment
With emerging markets looking for investment, Simon Miller looks at the rise of impact investment and what risks entails in this socially aware vehicle

This website is a part of Perspective Publishing Limited, registered in England No 2876166.