Greece

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.

Moody’s has downgraded Marfin Egnatia Bank’s covered bonds and placed the rating of those issued by National Bank of Greece on review for possible downgrade because of a cut in Greece’s sovereign rating from A1 to A2. These were the only negative rating actions on covered bonds since The Cover’s last bulletin on 18 December to the best of our knowledge; we will catch up on other covered bond rating developments and related issuer rating actions tomorrow (Tuesday).

Moody’s has confirmed the Aaa rating of mortgage-backed covered bonds issued by Alpha Bank Covered Bond plc because of two credit enhancements to the programme. Standard & Poor’s today (Friday) took rating actions on two Greek covered bond issuers because it downgraded the sovereign’s rating earlier this week.

Fitch has assigned an improved Discontinuity Factor to Alpha Covered Bond plc’s covered bonds because the issuer has lengthened the extendible maturity period from 12 months to 10 years. However, the covered bonds’ AAA rating remains on rating watch negative, the rating agency said yesterday (Tuesday).

Fitch placed the AAA ratings of covered bonds issued by National Bank of Greece, Alpha Covered Bonds plc, and Margin Egnatia Bank on rating watch negative yesterday (Wednesday) following the downgrade of Greece’s sovereign rating and the subsequent downgrade of Alpha Bank’s and NBG’s issuer ratings.

EFG Eurobank Ergasias is setting up a covered bond programme off which it hopes to be able to launch an inaugural issue in February 2010, a funding official at the bank told The Cover today (Monday).

Moody’s has put the deposit and debt ratings of National Bank of Greece on review for possible downgrade as part of several actions on Greek banks yesterday (Tuesday) after it put the Hellenic Republic’s A1 rating on review for downgrade.

Fitch on Friday revised the outlook on National Bank of Greece’s rating from negative to stable, citing the bank’s resilient operating profitability in the face of a challenging operating environment.

Alpha Bank is seeking to amend a negative pledge clause that would allow it to issue covered bonds directly instead of via a special purpose vehicle, according to Fitch.