Fitch Ratings on May 28 upgraded Eurobank Ergasias SA's long-term issuer default rating to CCC+ from CCC and viability rating to "ccc+" from "ccc," with a positive outlook on the long-term issuer default rating.

The rating agency also affirmed the short-term issuer default rating at C, support rating at 5 and support rating floor at No Floor.

The ratings upgrade followed the lender's recent accelerated reduction of its nonperforming exposures and reflects Eurobank's improved funding and liquidity profile, Fitch said.

Fitch said the positive outlook reflects its expectations that the lender's asset quality should improve substantially over the next 12 to 24 months, which will ultimately boost the operating profitability and ease pressure on capital.