S&P: Upgrades to BB+ Alpha Bank

In its one-tier upgrade, BB+ from BB, with stable prospects advanced Global Ratings, with the successful version of AT1 bond playing a decisive role in the decision of the house. The Bank’s new rating by S&P puts Alpha Bank at the same level as the National Bank and Eurobank. As the house analysts point out, the recent AT1 bond issue boosted capital adequacy, which was already in a positive trend thanks to the Bank’s improved operational performance. “In the last five years, operational recovery and the supporting macroeconomic environment have strengthened Alpha Bank’s funds. The net interest margins have improved significantly, thanks to monetary tightening, while the charges from NPEs have been smoothed after securitisations,” S&P also says in its report and concludes that “The prospects for Alpha Bank are stable, reflecting our expectations that the bank will present stable operational performance and its capitalisation will improve in the next 12 months, despite the bank’s plans to increase dividend distribution.” One tier higher placed Alpha Bank earlier today and Fitch Ratings, moving on to its upgrade to BB from BB-, with positive prospects. In its report, the company points out that a key factor in the upgrade was, beyond the positive macroeconomic environment in Greece, the continuous improvement of Alpha Bank’s credit profile, which includes the further reduction of Non-Served Opens (MEA) and enhanced profitability and capital adequacy, as shown by the financial results of the 1st semester 2024. Fitch analysts expect further reduction of unperforming exposures (ACEs), both organically and through new securitisations, and confirm that in the medium term the Bank’s profitability will not be substantially affected by the expected ECB interest rate reductions.