Moody’s affirmed the ratings of Eurobank, maintaining at Baa1 both the long-term deposit rating and the senior unsecured debt rating, while the Baseline Credit Assessment (BCA) and the Adjusted BCA remain at baa3.
At the same time, the agency upgraded the outlook for the long-term deposit rating to positive from stable, while for senior unsecured debt it changed it to stable from negative. The move follows the recent change in Greece’s outlook to positive from stable, with Moody’s maintaining the Greek rating at Baa3.
Moody’s highlights Eurobank’s strong and geographically diversified profitability, asset quality, and capital adequacy. In the first half of 2026, the annualized return on tangible equity (RoTE) stood at 16.6%, while operations in Southeastern Europe, mainly in Cyprus and Bulgaria, contributed 46% of net profits.
The CET1 ratio rose to 15.4% in June, compared with a minimum requirement of 10.7% and a target of 13%, while the NPE ratio declined to 2.5% from 2.8% a year earlier. Moody’s also notes comfortable liquidity, with a loans-to-deposits ratio of around 66% and an LCR of 174%.
However, the bank’s credit profile continues to be constrained by the rating of the Greek sovereign, due to its exposure to sovereign risk. An upgrade of Eurobank could occur provided that Greece is upgraded and strong profitability and asset quality are maintained.