Moody’s Upgrades Deposit Ratings for National Bank and Piraeus Bank
Moody’s has announced an upgrade in deposit ratings for National Bank and Piraeus Bank on Monday. In the case of National Bank, the long- and short-term deposit ratings were upgraded to Baa2/P-2 from Baa3/P-3. The outlook on the long-term deposit ratings was also changed to stable from positive.
The Baseline Credit Assessment (BCA) for National Bank was upgraded to BA1 from BA2, along with an upgrade in senior unsecured debt ratings to BAA2 from BA1. Moody’s noted that the upgrade in BCA reflects the bank’s improving solvency and strong funding and deposit franchise compared to its local peers.
Moody’s also mentioned that the bank’s outlook was changed to stable from positive, aligning it with the Greek government’s rating (BA1 stable). The ratings agency highlighted that further enhancements in asset quality, profitability, and capital metrics could lead to future upgrades for National Bank.
Regarding Piraeus Bank, Moody’s upgraded both the long- and short-term deposit ratings, although specific details were not provided in the announcement.
Moody’s downgrades bank’s credit rating
Moody’s has downgraded the credit rating of a bank from BA1/NP to BAA3/P-3, indicating a decrease in its long-term senior unsecured rating by two notches to BAA3 from BA2. Additionally, the bank’s standalone BCA and adjusted BCA have been revised to BA2 from BA3.
Positive outlook for long-term deposit ratings
Despite the downgrade in the bank’s credit rating, the outlook on its long-term deposit ratings remains positive. Moody’s attributed the upgrade in BCA to stronger financial fundamentals and expectations for further improvements in the future.
