The outlook for the long-term deposit ratings for two banks was changed to stable from positive following their upgrades, while the outlooks for the long-term deposit ratings for the remaining four banks remain positive.
The rating action was driven by structural improvements in the Greek economy, significant enhancements in banks' asset quality, improved core earnings, and in the case of Pancreta Bank S.A. its recent capital increase. It also captures the rating agency's view of better recovery rates in a bank resolution scenario analysis.
The principal rating driver is the improved economic standing of Greece, with better operating and credit conditions that provide a more supportive operating environment for the country's banks. Structural improvements and reforms have improved the economy's resilience to shocks.
As a result, Moody's has raised the Macro Profile it assigns to Greece to 'Moderate-' from 'Weak+' and has also raised its recovery value assumptions in a resolution scenario for Greek banks, which is the main driver for the deposit rating upgrades for all six banks. These positive developments in the operating environment signal also lower risks to Greek banks' solvency profiles.
The BCA of Alpha Bank was upgraded to b1 from b2, its long-term deposit ratings were upgraded to Ba2 from B1 and its senior unsecured debt rating was upgraded to Ba3 from B2.
The BCA of Piraeus Bank was upgraded to b2 from b3, its long-term deposit ratings were upgraded to Ba3 from B2 and its senior unsecured debt rating was upgraded to B1 from B3.
The BCA of Pancreta Bank was upgraded to caa2 from caa3, and its long-term deposit ratings were upgraded to B3 from Caa2.
The BCA of NBG was affirmed at b1, its long-term deposit ratings were upgraded to Ba2 from Ba3 and its senior unsecured debt rating was upgraded to Ba3 from B1.
Eurobank's BCA was also affirmed at b1, its long-term deposit ratings were upgraded to Ba2 from Ba3 and its senior unsecured debt rating was upgraded to Ba3 from B1.
Attica Bank's BCA was affirmed at caa3, and its long-term deposit ratings were upgraded to Caa1 from Caa2.
