Moody’s: Upgrading the Greek banking system

Specifically, the American house is previously changing the outlook for the Greek banking system to “positive” from “stable” due to the further improvement of the non-performing loans, mainly through the sale of NPLs and securitizations.

In addition, the gradual strengthening of banking profitability is positive, which, of course, according to Moody’s, starts from a low base, in relation to the banking systems of other Eurozone countries.

The American house gives Greece a “Ba3” rating and a stable outlook.

According to Moody’s, it is expected that any deterioration in banks’ assets will be moderate and controlled and that their profits will recover as the economy recovers after a sharp drop in real GDP, during the coronavirus crisis.

The banking system outlook reflects Moody’s assessment of fundamental credit conditions, which will affect banks’ creditworthiness over the next 12-18 months.

The positive outlook for the Cypriot and Greek banking systems mainly reflects the expectations for further improvements in the reduction of high levels of non-performing loans (NPL), mainly through sales and securitization, as well as the gradual increase in profits, which in any case begins from a low base.