Greece

Moody’s cut the rating of mortgage covered bonds issued by National Bank of Greece from Aa1 to Aa2 yesterday (Monday) and placed them on review for further downgrade, after lowering the rating of Greece and several of its banks last week.

EFG Eurobank Ergasias has set up a second covered bond programme, which is backed by Greek residential mortgages mainly denominated in Swiss francs. Moody’s yesterday (Monday) assigned an A1 rating, on review for possible downgrade, to a first series launched off the Eu3bn programme.

Moody’s this (Friday) morning downgraded National Bank of Greece from A2 to A3, after cutting the Greek sovereign rating similarly yesterday (Thursday).

Fitch downgraded Alpha Bank, EFG Eurobank Ergasias and National Bank of Greece from BBB to BBB- on Friday and put them on Rating Watch negative. The rating actions were among several that followed the Greek sovereign being cut to BBB-.

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.