Moody's on May 22 upgraded certain ratings of Greek lenders Alpha Bank AE Eurobank Ergasias SA and some of their subsidiaries.
Moody's upgraded Alpha Bank's long-term bank deposit rating and senior unsecured debt ratings to Caa2 from Caa3 and its long-term counterparty risk assessment to B3(cr) from Caa1(cr).
The agency also upgraded the senior unsecured debt ratings of the bank's U.K.-based units, Alpha Credit Group Plc and Emporiki Group Finance Plc, to Caa2 from Caa3. The outlook on the long-term deposit rating and senior unsecured debt ratings is positive.
Eurobank Ergasias' long-term bank deposit and senior unsecured debt ratings were also upgraded to Caa2 from Caa3, while its long-term counterparty risk assessment was upgraded to B3(cr) from Caa2(cr).
Moody's upgraded the senior unsecured debt rating of the lender's British subsidiary, ERB Hellas Plc, to Caa2 from Caa3. The outlook on the long-term deposit rating and senior unsecured debt rating is stable.
The upgrade of Alpha Bank's long-term deposit and senior unsecured debt ratings is based on the lender's expanding deposits in Greece, coupled with a reduction in its emergency liquidity assistance in the last few quarters, which led to lower loss severity for junior depositors and senior debt creditors, according to Moody's.
The upgrade of Eurobank's long-term deposit ratings also took into account its expanding deposits in the country, along with its recently issued Tier 2 bond.
