Fitch: Upgrades Greek Banks

In upgrading his evaluations for the four systemic advanced today (4,9,2024) the house, even giving all positive prospects (outlook). In particular, Fitch Ratings upgraded the long-term assessment of the National Bank and Eurobank in BB+ from BB previously, with positive prospects for both Greek banks. At the same time, it upgraded the long-term assessment of Alpha Bank and Piraeus Bank to BB from BB- previously, giving them also positive prospects. The company points out that the upgrading of the ratings of the four Greek systemic banks mainly reflects the improved assessment of the Greek operating environment by Fitch to “bb+”. He adds, he does not believe that the Greek economy will continue to exceed the average growth of the euro area, while adding that this, combined with the reduction of unemployment and the development of the Recovery and Durability Fund, should support the ability of banks to exploit profitable business opportunities. Fitch points out that the country’s durable economic growth of more than 2% in 2024 and 2025 will create business opportunities for Greek banks, due to real wages increases, the reduction of unemployment and stable investment. This will support the viability of the banking business model, the return on the quality of their assets, the resilience of their profitability and the creation of capital. Fitch notes that the upgrade also reflects the continuous improvements in the credit profiles of National, Eurobank, Alpha Bank and Piraeus, including a further reduction in the stock of troubled assets (including non-performing exposures (NPEs) and net assets) and sound profitability resulting in capital accumulation. Finally, the company notes that the positive prospects for all systemic banks reflect Fitch’s expectation that the assessment of the operating environment could be further improved if positive macroeconomic trends continue and lead to satisfactory business opportunities for banks.