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.
