Moody’s Ratings (Moody’s) today confirmed the long-term local- and foreign-currency deposit ratings of Piraeus and Alpha Bank, upgrading the outlook to “positive” from “neutral”
The move follows the recent change in Greece’s outlook from stable to positive, alongside the confirmation of the long-term issuer rating at Baa3.
As the agency notes, the ratings of Alpha Bank could be upgraded if the credit rating of the Hellenic Republic is upgraded and the bank’s financial performance remains resilient over the next 12–18 months.
Conversely, the ratings could be downgraded if there is any deterioration in Alpha Bank’s credit profile that puts pressure on its Baseline Credit Assessment (BCA) or if the volume of liabilities that absorb losses and protect depositors in the event of default is reduced.
Piraeus’s deposit ratings could be upgraded if the bank maintains resilient financial performance over the next 12–18 months, leading to an upgrade of its BCA, while at the same time the credit rating of the Hellenic Republic is upgraded.
Conversely, the ratings could be downgraded if the deterioration of the bank’s credit profile puts downward pressure on its BCA or if the volume of liabilities that absorb losses and protect depositors in the event of default is reduced.