Fitch Ratings has assigned
Fitch has also affirmed the long- and short-term programme ratings of '
A full list of ratings is provided below.
Fitch has affirmed and withdrawn the
Fitch has also affirmed and withdrawn the senior preferred debt ratings of
KEY RATING DRIVERS
IDRs AND VR
A small amount of assets and liabilities are expected to remain on the
The bank has announced a series of actions for 2021 that will facilitate the disposal of an additional
We therefore expect that our assessment of asset quality of the bank, which is a factor of high importance in assessing the rating of the group, could improve. Nonetheless, material risks remain, including the possibility that the transactions are not completed over the 18-to-24 month rating horizon or that its impact on the overall asset quality of the group is not as large as expected.
Like other Greek banks,
SENIOR PREFERRED DEBT
Long-term senior preferred debt ratings are notched down twice from
SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating of '5' and Support Rating Floor of 'No Floor' highlight our view that support from the state cannot be relied upon. This is because of
RATING SENSITIVITIES
IDRs AND VR
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Fitch could upgrade
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The ratings would likely be downgraded if the deterioration in the operating environment results in a permanent damage of the bank's asset quality and capital, including an erosion of capital buffers without a clear path for the capital ratios to be restored within a reasonable timeframe. Downside pressure on the ratings could also arise if depositor-and-investor confidence weakens, compromising the bank's liquidity profile. Support measures by the authorities, including state-loan guarantees, liquidity facilities or sector-wide schemes for reducing problem assets, could mitigate the negative rating pressures on the bank.
SENIOR PREFERRED DEBT
The ratings of senior preferred debt are sensitive to changes in the Long-Term IDR and to the extent of asset encumbrance by secured funding. An increase in the proportion of unsecured funding in the bank's funding mix and/or improved asset-quality expectations could result in a narrower notching from the Long-Term IDR. The ratings of senior preferred debt may be downgraded if the Long-Term IDR is downgraded as the current notching from the Long-Term IDR of two notches is currently at its widest permitted under our criteria.
SUPPORT RATING AND SUPPORT RATING FLOOR
An upgrade of the Support Rating and upward revision of the Support Rating Floor would be contingent on a positive change in
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
RATING ACTIONS
ENTITY/DEBT RATING RECOVERY PRIOR
Senior preferred
LT CC Affirmed RR6 CC
Senior preferred
LT WD Withdrawn CC
Senior preferred
ST C Affirmed C
Senior preferred
ST WD Withdrawn C
Piraeus Bank S.A. LT IDR CCC New Rating
ST IDR C New Rating
Viability ccc New Rating
Support 5 New Rating
Support Floor NF New Rating
Piraeus Financial Holdings S.A. LT IDR CCC Affirmed CCC
LT IDR WD Withdrawn CCC
ST IDR C Affirmed C
ST IDR WD Withdrawn C
Viability ccc Affirmed ccc
Viability WD Withdrawn ccc
Support 5 Affirmed 5
Support WD Withdrawn 5
Support Floor NF Affirmed NF
Support Floor WD Withdrawn NF
Senior preferred
LT CC Affirmed RR6 CC
Senior preferred
ST C Affirmed C
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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