Greece

Moody’s has placed on review for possible downgrade the covered bonds issued by six Greek banks, highlighting that timely payment indicators of the various programmes are “very improbable”.

Standard & Poor’s placed three Greek covered bond issuers and one Greek bank that is setting up a covered bond programme on negative review on Friday, following its placement of the Greek sovereign on CreditWatch negative the day before.

In brief: Greece’s ATEbank is in the process of establishing a Eu5bn covered bond programme, an official at the bank has confirmed.

Greece’s Piraeus Bank is setting up a covered bond programme that will provide for direct issuance if a group of bondholders agrees to amend negative pledge conditions, according to an official at the bank.

Fitch downgraded covered bonds issued by Greece’s Alpha Bank off a direct issuance programme from A to A- yesterday (Thursday), and today withdrew ratings of Alpha covered bonds launched off an indirect issuance programme.

A draft Cypriot covered bond law is close to being presented to parliament, after the European Central Bank gave a conditional positive appraisal of the legislation last week.

Standard & Poor’s is assessing the possible impact on Greek covered bonds of a Greek personal bankruptcy law that will enter into effect at the beginning of September, the rating agency said on Friday.

Fitch downgraded mortgage-backed covered bonds issued by Greece’s Marfin Egnatia Bank from A+ to A- yesterday (Wednesday).

Standard & Poor’s affirmed Alpha Covered Bond programme at A-, on negative outlook, on Wednesday, and removed it from CreditWatch negative.

Moody’s downgraded from A1 to A3 mortgage-backed covered bonds issued by Greece’s Marfin Egnatia Bank last Friday because of a cut in the senior unsecured rating of its parent, Cyprus’s Marfin Popular Bank.

Moody’s has downgraded Marfin Egnatia Bank from Baa2 to Baa3 because of a weakened ability of its parent to provide support if required. However, the ratings are on positive outlook.

National Bank of Greece has set up a second covered bond programme “as part of its strategic planning for optimal use of its balance sheet and development of contingent liquidity”, it said yesterday (Thursday).