Greece

Moody’s yesterday (Wednesday) downgraded mortgage covered bonds issued by Alpha Bank and National Bank of Greece because of heightened sovereign debt risk in Greece, and affirmed the rating of those issued by Eurobank Ergasias.

Moody’s has concluded a review of its criteria for Greek structured finance and covered bond transactions by leaving open the possibility of them to achieving Aaa ratings.

Fitch yesterday (Thursday) affirmed National Bank of Greece’s covered bonds at AA, removed them from Rating Watch Negative, and rated a further series off the issuer’s Eu10bn programme.

Fitch downgraded covered bonds issued by Marfin Egnatia Bank from AA+ to AA on Friday.

Fitch yesterday (Thursday) revised the outlook on Marfin Egnatia Bank’s long term issuer rating from stable to negative because of its Greek exposure.

EFG Eurobank Ergasias has finalised a Eu5bn covered bond programme, and will on Monday launch a Eu500m five year issue that will initially be retained, a funding official at the Greek bank told The Cover.

Five Greek banks have been put on review for downgrade by Moody’s, including covered bond issuers Alpha Bank and National Bank of Greece.

Fitch has downgraded the covered bonds of National Bank of Greece, Alpha Bank and Margin Egnatia Bank because it expects a deterioration of Greece’s public finances will make it more difficult to sell or refinance cover pool assets in the event of an issuer default.

Moody’s has put on review for downgrade Alpha Bank’s Aaa covered bond rating alongside all but one of its Aaa ratings of Greek securitisations.

Standard & Poor’s yesterday (Tuesday) downgraded Alpha Bank’s covered bonds from AAA to AA- in its first rating action on a Category 3 covered bond programme. The downgrade to the Greek bank’s programme is the biggest cut so far under the rating agency’s new methodology.

Moody’s is reviewing the potential implications for covered bond and structured finance ratings of a deterioration in Greece’s public finances, in particular whether a Aaa rating ceiling is appropriate in light of an A2 sovereign rating.

A Greek household debt restructuring law that is under public consultation could lead to negative rating actions on Greek covered bonds and securitisations if enacted in its current form, according to Fitch.